LSL Property Services (LON:LSL) Announces Earnings Results

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

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%

Shares of LSL traded up GBX 4 during mid-day trading on Thursday, hitting GBX 260. The company had a trading volume of 83,643 shares, compared to its average volume of 214,450. LSL Property Services has a 1-year low of GBX 204 and a 1-year high of GBX 290. The business’s 50-day simple moving average is GBX 255.10 and its 200-day simple moving average is GBX 233.12. The stock has a market cap of £253.83 million, a PE ratio of 16.05, a P/E/G ratio of 1.49 and a beta of 0.44. The company has a quick ratio of 1.05, a current ratio of 2.60 and a debt-to-equity ratio of 46.65.

Insiders Place Their Bets

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

Analysts Set New Price Targets

Separately, Shore Capital Group restated a “house stock” rating on shares of LSL Property Services in a research report on Tuesday. Two research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock has an average rating of “Buy” and a consensus target price 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.