LSL Property Services (LON:LSL) Posts Quarterly 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 net margin of 9.21% and a return on equity of 20.71%.

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 5.2%

LSL traded up GBX 13 during trading on Tuesday, hitting GBX 263. 235,863 shares of the stock traded hands, compared to its average volume of 215,884. The firm has a 50-day moving average of GBX 252.78 and a 200 day moving average of GBX 233.06. LSL Property Services has a 12-month low of GBX 204 and a 12-month high of GBX 298. The firm has a market capitalization of £256.76 million, a P/E ratio of 16.23, a price-to-earnings-growth ratio of 1.49 and a beta of 0.44. The company has a debt-to-equity ratio of 55.75, a current ratio of 2.25 and a quick ratio of 1.05.

Insiders Place Their Bets

In related news, insider Darrell Evans acquired 2,581 shares of LSL Property Services 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. Insiders own 21.39% of the company’s stock.

Analysts Set New Price Targets

Separately, Shore Capital Group reaffirmed a “house stock” rating on shares of LSL Property Services in a research note on Tuesday. Two research analysts have rated the stock with a Buy rating, According to MarketBeat, the stock currently has a consensus rating of “Buy” and an average price target of GBX 360.50.

LSL Property Services Company Profile

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.