LSL turnover falls by more than a quarter

Estate agency group LSL, which owns the Your Move and Reeds Rains chains, has announced that its first-quarter turnover fell 28% from last year.

However, the group insists it is trading slightly better than expectations.

The company said it would continue its strong cost controls and cashflow management, and would be ‘appropriately cautious’ about the rest of this year.

Turnover in LSL’s surveying business fell 25% for the quarter ended March 31, while sales at its estate agency and financial services division declined 32%.

Roger Matthews, chairman of the York-based group, told shareholders: “The systemic lack of liquidity in the lending market and concern around unemployment are expected to continue to suppress UK housing market activity in the short to medium term.

“As a consequence, the timing of a return to more ‘normalised’ market conditions remains uncertain.”

He added: “The volume of house purchase transactions continue to be at an historic low, but more recently the level of buyer inquires and activity in our estate agency business has been encouraging.

“The group will also benefit from a substantially reduced cost base in 2009 and the continued growth of counter-cyclical income stream businesses such as lettings and repossessions asset management.”

LSL made a pre-tax loss of £4.8m last year compared to a profit of £22.3m in 2007.