Property giant LSL looks for return on expansion

By DAILY MAIL REPORTER
Updated: 10:35 EST, 3 March 2010

LSL Property Services - the new owner of Halifax Estate Agencies - today said it was looking forward to a “significant contribution” from its recent acquisition. At the same time, the Your Move-owner cautioned that the short-term outlook for the UK housing market remains “uncertain”.

LSL bought the loss-making Halifax branches for the nominal sum of £1 last October and hopes to see them return to profit this year. The acquisition of the 206 branches pushed the total number of LSL-owned outlets to 575.

The prediction came as the group unveiled full-year results for 2009. LSL posted pre-tax profits of £16.6m - a reversal of the £6.2m loss it suffered in 2008.

Growing: Your Move owner LSL has expanded to 575 branches 

The estate agency operation also moved into the black, with profits of £6.7m - up from the £8.4m loss it suffered the year before.

Its surveying business was impacted by lower levels of mortgage approvals and saw revenues fall 12%, while underlying earnings dropped from £28.6 million to £23.5 million.

LSL has already re-branded the former Halifax branches to become Your Move, Reeds Rain and Inter-County outlets.

City analysts today hailed LSL’s strategy of expanding ahead of the expected upturn in the housing market. Numis Securities said: "In our view, LSL offers a good way to play the ultimate recovery in UK residential transaction volumes without taking as much price risk as a housebuilder."