Your Move group cuts its losses

LSL today appears to report a similar story to Connells, with revenue down but cost cutting becoming the order of the day.

However, while group profits were up, the estate agency operation – Your Move, and Reeds Rain – still made a loss, of £0.9m. This was down from £5.2m. The estate agents handled 35% fewer house sales year on year. Costs in the estate agency division were reduced by 27%.

This morning, LSL reported a 17% increase in group profits for the first half of the year from £9.3m last year to £10.9m. This was despite a large decline in revenue, down from £93.1m to £74.1m.

Surveying profits in the group were described as resilient despite a 48% fall in mortgage approvals.

LSL has managed to reduce its huge debts, from £18.6m to £43.1m.

Roger Matthews, LSL chairman, said: “The Group is well placed to build on the first half's performance during the remainder of 2009 and to deliver significant growth when market conditions improve.”

But he also warned that market conditions remain uncertain due to the continued shortage of widely available mortgage products, particularly for first time buyers.