LSL Property Services (LON:LSL) Posts Earnings Results

LSL Property Services (LON:LSL) released its quarterly earnings data 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 Down 1.7%

Shares of LON LSL opened at GBX 258.60 on Wednesday. The business has a 50-day moving average price of GBX 253.64 and a two-hundred day moving average price of GBX 233.10. The company has a current ratio of 2.25, a quick ratio of 1.05 and a debt-to-equity ratio of 55.75. The firm has a market capitalization of £252.47 million, a PE ratio of 15.96, a PEG ratio of 1.49 and a beta of 0.44. LSL Property Services has a one year low of GBX 204 and a one year high of GBX 295.

Analyst Upgrades and Downgrades

Separately, Shore Capital Group reiterated a “house stock” rating on shares of LSL Property Services in a research note on Tuesday. Two equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the company currently has an average rating of “Buy” and an average target price of GBX 360.50.

Insider Buying and Selling at LSL Property Services

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

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.