LSL Property Services PLC on Wednesday said momentum had increased, and its balance sheet remains strong so far in 2024.
Shares in LSL were trading 11% higher at 264.00 pence in London early on Wednesday afternoon.
The Newcastle Upon Tyne, England-based company reported increased momentum over the first two months of 2024, ‘with positive activity levels across the group’ after 2023 ended with a ‘positive final quarter’.
LSL, which services mortgage intermediaries and franchised estate agencies, said that by the end of February, its underlying operating profit ‘was materially ahead of the board’s previous expectations’.
It said this was in large part due to ‘very strong trading in the Surveying & Valuation division’. The sector’s income per day for the first two months was 50% higher than in the same period last year, reaching ‘its highest level since the market disruption that followed the mini budget in October 2022’ in February.
LSL also said mortgage completions so far this year have been in line with its expectations in the Financial Services division.
Profit in Estate Agency Franchising, meanwhile, was around £1 million for the period, following a £1.5 million loss in 2023. LSL said this ‘reflects the benefit of the reduced volatility of the franchising model’.
Net cash at February 29 was around £28 million, down from £34.9 million at December 31. LSL said the reduction reflects its acquisition of the TenetLime mortgage network, and that it ‘retains a strong balance sheet’ regardless.
This early trading performance, LSL said, ‘reaffirms the board’s confidence that profits in 2024 will be materially ahead of 2023.
‘The earlier than expected recovery means that even at this stage of the year, the board’s expectations for the full year have increased,’ it added.
Still, LSL noted that ‘it remains difficult’ to confidently predict ‘the future path’ of the housing and mortgage markets, although commentators ‘have pointed to improving conditions’.
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