NetworkMar 6 2018

LSL profits fall despite arranging more mortgages

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LSL profits fall despite arranging more mortgages

LSL Property Group reported revenue was up 1 per cent to £311m in 2017, but there was a 27 per cent reduction in profit before tax compared with 2016.

The group's profit had been boosted the year before by disposal of shares in Zoopla.

The board said the financial performance of the group was strong, including an increase in how much mortgage lending it arranged for borrowers through its Primis mortgage network from £17.1bn in 2016 to £21bn in 2017.

The group has just acquired Personal Touch Financial Services.

Financial services income represented 24 per cent of total group revenue in 2017, compared with 21 per cent in 2016.

Chairman Simon Embley said market conditions had softened slightly and LSL expects to see a modest reduction in the volume of house purchase transactions compared to the prior year, with the rate of house price inflation outside Greater London continuing to ameliorate. 

He said: "Mortgage costs continue to be low by historic standards and mortgage availability remains good. The medium to longer term fundamentals of the UK housing market remain solid.

"We are positive regarding the outlook for the business, driven in part by LSL's ambition to continue to deliver a programme of self-help measures, including organic growth in estate agency in financial services income and lettings Income, with the aim of optimising organic growth."

In January 2018 LSL acquired the entire issued share capital of Personal Touch Financial Services and its subsidiary company, Personal Touch Administration Services. 

Personal Touch Financial Services is a financial services business specialising in the provision of mortgage and other financial services products via its network of intermediaries.