LSL Property Services has posted mixed results for 2016 but says it is “well positioned to capitalise on market conditions to increase shareholder value” in 2017.
The residential property company’s underlying operating profit fell from £42.9m in 2015 to £34.6m in the year to 31 December, and its annual dividend per share fell 18% from 12.6p to 10.3p. However, revenues rose 2% to £307.8m and pre-tax profits increased 64.5% from £38.6m to £63.5m.
“Following a strong first-half performance, the group delivered a resilient second-half performance given the changing market conditions,” said Simon Embley, chairman of LSL.
“I am pleased that we maintained revenue growth in both the estate agency and surveying divisions.
“The group reacted decisively to the changing market conditions in the second half by taking selective cost measures and strengthening the balance sheet.”
The group had relatively low levels of gearing and was very cash generative at an operational level, he said, adding: “The business is well positioned to capitalise on market conditions to increase shareholder value.”
Chris Millington, an analyst at Numis Securities, welcomed the results in a ‘buy’ note issued following the results.
“Overall, we think this is a creditable performance in the face of variable market conditions,” he said.