LSL Property Services (LON:LSL) Posts Quarterly Earnings Results

LSL Property Services (LON:LSL) released its earnings results on Tuesday. The company reported GBX 11.90 earnings per share for the quarter, Digital Look Earnings reports. LSL Property Services had a return on equity of 20.71% and a net margin of 9.21%.

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 Price Performance

Shares of LSL opened at GBX 257 on Tuesday. The firm has a market capitalization of £250.90 million, a PE ratio of 15.86, a P/E/G ratio of 1.49 and a beta of 0.44. LSL Property Services has a 52-week low of GBX 204 and a 52-week high of GBX 298. The company has a debt-to-equity ratio of 55.75, a quick ratio of 1.05 and a current ratio of 2.25. The stock has a 50 day simple moving average of GBX 252.78 and a 200 day simple moving average of GBX 233.06.

Insider Buying and Selling

In related news, insider Darrell Evans bought 2,581 shares of LSL Property Services stock in a transaction that occurred on Thursday, July 30th. The stock was purchased at an average cost of GBX 246 per share, with a total value of £6,349.26. Corporate insiders own 21.39% of the company’s stock.

Wall Street Analyst Weigh In

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

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.