LSL Property profit to exceed expectations

Shares of LSL Property Services jumped on Tuesday after the company said annual underlying profit would be slightly better than it had expected and higher than the previous year.

Revenue for the year to the end of December fell 4% including branch closures at the Your Move and Reeds Rains estate agent chains, LSL said in a trading update. Excluding closure costs, revenue rose 4%.

At 1200 GMT, the shares were up 10.3% at 320p.

Estate agency revenue fell 16%, affected by the branch closures. Excluding the impact of branch closures estate agency revenue fell 4% with Marsh & Parsons revenue down 3% in a tough London market.

Financial services organic revenue growth was 1% excluding estate agency. Including estate agency total financial services revenue fell 2%. Revenue rose 24% at the surveying division, helped by a tie-up with Lloyds Bank.

LSL said: "We anticipate full year group underlying operating profit for the year ended 31 December 2019 will be slightly ahead of the board's prior expectations and slightly ahead of last year which is a highly resilient performance in the context of challenging residential market conditions during 2019."

The company said it was too early to pronounce on the 2020 market outlook but that greater political stability and a favourable estate agency sales pipeline were a positive context for the start of 2020.