LSL sees profits turn to losses

06 March 2009

2266 Reads
3 Comments

Written by Rosalind Renshaw

LSL Property Services, the parent company of Your Move and Reeds Rains estate agencies brand, was badly hit by the housing market collapse last year.

It made pre-tax losses of £4.8m for 2008, compared with pre-tax profits of £22.3m in 2007. The group spent £8.2m on restructuring itself to reduce operating costs by 22%.

LSL said that its estate agency and financial services operations reflected market conditions with underlying operating losses in 2008 of £8.4m, compared with profits of £13m in 2007.

However, non-exchange business increased by 17%, up to £29.2m. This included repossessions work.

Lettings income also shot up, by 24% to £15.8m, and despite a 59% fall in exchange income, overall revenue for Your Move and Reeds Rains fell by 39%.

Roger Matthews, LSL’s chairman, said: “The board remains cautious on market conditions for 2009 and the timing of any recovery is uncertain.

“In 2009 to date, buyer inquiries and activity levels within our estate agency businesses have been encouraging, but this is balanced by the lack of supply in the mortgage market.”

Comments

- richard
Strange this lot can't make money out of their repo business when Connells report making shed loads, which is the better business I wonder?
- 09 March 2009 17:17 PM
- phil
Reeds Rains were good a few years back but over the last 2 years seem to have lost the plot. Only time will tell.
- 06 March 2009 20:58 PM
- Real Shame
Our hearts bleed for them. As a smaller independent we wonder where they will find the money to make sure they put us out of business, as openly planned. And, No, we are not prepared to answer their letters from regional directors offering to help the small agents by generously taking on their instructions!! How kind their offers are.
- 06 March 2009 11:04 AM

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