Shares in estate agency and lettings business LSL Property Services (LSL) remain flat as 2015’s results offered few surprises.
The stock trades 0.7% higher to 260.5p as operating profit edging 2% higher during the calendar year to within touching distance of £43 million.
Investors received a 2% higher dividend than they did in 2014 at 12.6p a share, a 4.8% yield.
The only figure that has made analysts’ re-appraise their forecasts was a 3% gain in earnings per share (EPS) at 31.5p, a slight beat to the 31.1p Numis’ market watchers had been expecting.
‘We have left forecasts unchanged and introduced a 2017 estimate which implies modest profit growth versus 2016,’ the broker’s analysts said after digesting the figures.
‘In our view this is a creditable performance against the backdrop of broadly flat transaction volumes and a competitive market backdrop given the shortage of stock.’
LSL, which owns 12 brands, sells residential properties, manages lettings, offers surveying and conveyancing as well as a mortgage brokering service.
Revenue from house sales was 5% higher year-on-year, while lettings’ turnover improved by 12%. Financial services led the way with 16% revenue growth.
LSL’s goal is to lift profit per branch to £100,000 from the current £46,000 average.
Other targets include expanding the number of its Marsh & Parsons branches in London to at least 30 from 25 and grow the lettings book through further acquisitions.
