Better performance by Newcastle real estate giant
Newcastle-based LSL has reported improved turnover and profits
The price of houses is expected to be affordable after last week’s budget in which the government announced measures for making housing possible for more number of people. The stamp duty was scrapped for first time buyers to make housing within the reach of more people. The move by the government also includes support for the construction of new homes. This has enabled many real estate agents to plan for the residential property sector.
One such real estate giant, LSL, hopes to have better figures for 2018, however it intends to be cautious in the next year due to surrounding economic changes and said that it will monitor the impact on the UK housing market going forwards. The changes in stamp duty may help LSL increase turnover in its residential sales business. The estate agency said that with continued uncertainty over UK economic conditions and the UK and global political environment, it will continue to remain cautious on the market outlook for 2018. In the real estate segment, it owns 12 estate brands which include Your Move and Reeds Rain.
At present, it registered good performance (2017), with revenues growing from £258m to £260.9m, an increase by 1.1 per cent. The Newcastle-based real estate firm said that turnover has grown to £109.4m during the four months ending October 31, representing a 2.6 per cent increase compared to the same period in 2016. The revenue growth of the firm has been driven by good performance in its financial services division, which increased by 16 per cent over the 10-month period. The giant is also into surveying practice, which has suffered during the third quarter of the year resulting in a 1 per cent drop in the division’s revenues.
The company has updated its investors, saying that the board anticipates the full year 2017 group underlying operating profit will be marginally ahead of its prior expectations. Investors have reacted strongly to the news that LSL’s profits are expected to rise. The company’s share price has jumped 1.8 per cent following the announcement, from 259.25p per share to 264p.
Growth in the company’s financial services segment helped it boost its estate agency division by 2 per cent despite residential sales suffering during the year. House sales have fallen by 9 per cent so far this year. But the company’s letting business made up for its falling sales figures.