Lsl Prop Regulatory News (LSL)

29 Jun 2007 07:03

LSL Property Services29 June 2007 For Immediate Release 29 June 2007 LSL Property Services plc ("LSL" or "the Group") Pre-Close Trading Update and Major Surveying Contract Win LSL, a leading provider of residential property services incorporating estateagency brands Your Move and Reeds Rains and surveying brands e.surv andChancellors Associates, is today providing a pre-close update for the half yearending 30 June 2007, together with the announcement of a major outsourcingcontract. LSL is proposing to announce its interim results on 9th August 2007 Pre-Close Trading Update The UK housing market has remained relatively robust with house sale exchangesduring the first half of 2007 down by 3% on strong comparatives for the sameperiod in 2006. Against this backdrop LSL's surveying and agency businesses haveperformed well and the results for the half year ending 30 June 2007, will beslightly ahead of our expectations. For this period, LSL estimates that: * Group turnover is up 13% * Estate agency and financial services turnover is up 12% * Surveying turnover is up 15% Turnover has benefited from maiden contributions from Chancellors Associates andInterCounty. In addition, significant growth has been achieved inproperty-careers.com and Linear Mortgage Network. Contract Win LSL is delighted to announce a major contract win as part of the ongoingdevelopment of its surveying division. For a cash consideration of £30m LSL istaking over the existing valuations infrastructure of C&G and assuming theexclusive panel management rights with effect from 30th June 2007. The initialcontract period is five years and the contract involves providing exclusivephysical valuation panel management services to Cheltenham & Gloucester plc, aleading UK mortgage provider with a mortgage stock market share of circa 8% as at the 31 December 2006. The contract is expected to enhance earnings significantly and provides anopportunity to leverage the surveying assets across the group, which taking intoaccount the agreed valuation fee and the current cost base, will deliver anenhanced profit margin, well in excess of the current survey margin. Paul Latham, the Group's Deputy Chief Executive with responsibility for thesurveying division, welcomed this major contract win saying; "I am delighted that C&G, which last year conducted in excess of 150,000physical valuations, has chosen LSL as its partner to provide this importantservice and once again this demonstrates the market leading proposition that LSLis able to offer to UK lenders." Commenting on the trading update Simon Embley, Group Chief Executive, said; "Whilst the trading in the first half of 2007 provides us with a strongfoundation for the full year, we remain cautious about the short term housingcycle given the recent successive interest rate rises. However our operatingmodel demonstrates resilience to the housing market, particularly as the lesscyclical surveying division represents a high proportion of the Group's profits.Today's C&G contract win is an important milestone and further strengthens theGroup for future growth." For further information please contact: LSL Property Services plc 01904 715324 Simon Embley CEO Dean Fielding Group Finance DirectorBuchanan Communications 020 7466 5000Richard Darby, Nicola Cronk, Catherine Breen This information is provided by RNS The company news service from the London Stock Exchange