LSL Property Services (LON:LSL) Posts Earnings Results

LSL Property Services (LON:LSL) posted its quarterly earnings data on Tuesday. The company reported GBX 11.90 earnings per share (EPS) for the quarter, Digital Look Earnings reports. LSL Property Services had a net margin of 9.26% and a return on equity of 21.39%.

Here are the key takeaways from LSL Property Services’ conference call:

• First-half profit and margins increased: Revenue rose 3% to £92.3 million, while underlying operating profit grew 11% to £15.9 million and the operating margin reached just over 17%, its highest first-half level in more than 15 years.
• Strong cash generation and shareholder returns continued, with 91% operating cash conversion, 36% return on capital employed and more than £12 million returned through dividends and buybacks; period-end net cash was £22 million.
• The group launched a transformation program targeting at least £5 million of annualized benefits by 2027 through streamlined finance and procurement, with further potential from technology and front-office productivity improvements.
• Surveying & Valuation and Estate Agency Franchising performed strongly, with operating profit up 11% and 24%, respectively; lettings growth, asset management expansion and additional lender contract wins supported the results.
• Financial Services faced pressure from investment in a new CRM, lower advisor numbers and product mix, causing revenue to fall 3% and operating profit to decline by £0.9 million, although management highlighted protection penetration and advisor productivity as improvement opportunities.

LSL Property Services Trading Up 1.6%

LSL Property Services stock traded up GBX 4 during trading hours on Thursday, reaching GBX 260. The company had a trading volume of 83,643 shares, compared to its average volume of 214,450. The company has a debt-to-equity ratio of 46.65, a current ratio of 2.60 and a quick ratio of 1.05. LSL Property Services has a 12-month low of GBX 204 and a 12-month high of GBX 290. The company has a 50-day moving average price of GBX 255.10 and a 200 day moving average price of GBX 233.12. The firm has a market cap of £253.83 million, a price-to-earnings ratio of 16.05, a P/E/G ratio of 1.49 and a beta of 0.44.

Insider Activity

In other news, insider Darrell Evans bought 2,581 shares of the business’s stock in a transaction dated Thursday, July 30th. The shares were purchased at an average price of GBX 246 per share, for a total transaction of £6,349.26. Corporate insiders own 21.39% of the company’s stock.

Wall Street Analysts Forecast Growth

Separately, Shore Capital Group reissued a “house stock” rating on shares of LSL Property Services in a report on Tuesday. Two investment analysts have rated the stock with a Buy rating, According to MarketBeat.com, LSL Property Services presently has a consensus rating of “Buy” and a consensus price target of GBX 360.50.

About LSL Property Services

LSL Property Services plc, together with its subsidiaries, engages in the provision of business-to-business services to mortgage intermediaries and estate agency franchisees, and valuation services to lenders in the United Kingdom. The company operates through three segments: Financial Services, Surveying & Valuation, and Estate Agency Franchising. The Financial Services segment offers compliance and other services to mortgage and insurance networks. The Surveying & Valuation segment provides valuations and professional surveying services of residential properties to various lenders and individual customers; data services to lenders; and asset management services, including managing the sale of residential properties on behalf of corporate clients and property investors.