LSL Property Services - which owns agency brands including Your Move, Reeds Rains and Marsh & Parsons - has reported strong profits and revenue for the first half of the year but says the sales market “will remain suppressed” for the rest of 2016.
Group revenue increased eight per cent to £151.4m and pre-tax profits soared 35 per cent to £8.4m. Lettings income went up by 11 per cent to £34m while the overall agency business revenue rose nine per cent.
In the volatile London market, Marsh & Parsons performed relatively strongly; it grew revenues 11 per cent to £17.1m while operating profits rose 47 per cent to £2.2m.
Sales transaction volumes grew substantially in the first quarter of the year across all LSL brands and throughout the country thanks to activities ahead of the stamp duty surcharge deadline but “Q2 saw a slowing down of transaction volumes in the run up to the EU referendum” the firm says.
“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” says Simon Embley, LSL chairman.
“Our lettings business continues to perform well, now representing 29 per cent 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” he concludes.
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"Sales suppressed for rest of 2016"
That's a great attitude to have if you want to succeed. Not!
Am I the only one that is prepared to push forwards no matter what!
Unfortunately people will still die (and need their property selling), people will get divorced (and need their property selling), people will get into debt (and need their property selling), people will need to relocate because of work (and need their property selling), people will need to downsize (and need their property selling), people will need to upsize (and need their property selling)!
Can anyone see a pattern here?
Please be solution conscience, rather than problem conscience!
The media make much more money by selling negative news than they do selling positive news!
Please let's all go out there and talk our industry up rather than into further recession.
Happy days!
Great to have loads of people selling - but you also need people buying and you really dont ever have to buy
You do have to still buy to end up selling for instance:
If you want that home that as Carl Said "Unfortunately people will still die (and need their property selling)", You will still need that home before "people will get divorced (and need their property selling)", no comment for this one "people will get into debt (and need their property selling)", You will still need to buy that home "people will need to relocate because of work (and need their property selling)," and so on.......
Pre-tax profits up 35% on T/O up 8%? what are they now doing right whereas before they were doing wrong?
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