LSL Property Services Plc has revealed that it does not expect market conditions to improve sufficiently to meet its previously stated financial expectations for the full year.
The group posted what it described as strong performance for the first six months of the year. Group revenue was up 8% to £151.4m with growth in both estate agency and surveying divisions.
Group operating profit was up 10% to £11.3m with operating profit margins slightly higher at 7.5%.
Simon Embley, LSL chairman, said: “The Group has delivered a strong first half performance in a changing market. I am particularly pleased with the profit growth in both estate agency and surveying.
“Whilst we expect residential sales volumes to remain suppressed in the second half, trends in other parts of our business are expected to be more resilient. Our lettings business continues to perform well, now representing 29% of total estate agency income. Mortgage cost and availability remain positive for the UK housing market with increasing distribution of products through intermediary channels which will support our growing financial services business.
“Whilst these are uncertain times in the residential housing market, the group has strong fundamentals with a robust balance sheet and relatively low levels of gearing. The business will adapt quickly as it has in the past and is well positioned to navigate the current market conditions. I remain confident that LSL will continue to deliver long term value to our shareholders.”