LSL Property Services PLC on Monday said its half-year results were impacted by ‘significant changes’ in the mortgage market.
Shares in LSL were down 14% at 243.00 pence each in London on Monday morning.
In the six months to June 30, the Newcastle, England-based estate agency said total revenue fell by 35% to around £104 million from £160.9 million a year prior, while underlying operating profit dropped by 75% to around £3.5 million from £14.2 million the year before, although still remained in line with expectations.
LSL said its Financial Services and Surveying divisions were particularly impacted. For Financial Services, lending reduced by 27%, and remortgage lending fell by 15%. As for Surveying, LSL said interest rate increases have led to a 40% drop in lender instructions.
Looking ahead, the company said mortgage lending in the second half of the year remains ‘highly uncertain’, and expects lower levels of purchasing and remortgaging activity than previously expected. LSL added full year profit will be lower than expected.
Chief Executive Officer David Stewart said: ‘The more challenging market conditions in the short-term will not prevent us from continuing to take the required steps to deliver on the identified opportunities for future growth.’
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