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LSL financial services income up 25% – interim results

  • 06/11/2013
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LSL financial services income up 25% – interim results
LSL interim results show market transaction levels up six months in a row with financial services income up 25% year-on-year, according to figures to October.

Total mortgage volumes in the third quarter of 2013 were 24% higher than in the same period in 2012.

Reflecting the shortage of UK surveyors and improved market conditions, the surveying division reported revenue up 12% year-on-year in the period July to October 2013.

Substantial investment in recruitment added 179 to the headcount in estate agencies since July.

LSL, incorporating advice networks Pink and First Complete, offers consumers residential sales, lettings, surveying and advice on mortgages and non-investment insurance products. Services to mortgage lenders include: valuations and panel management services, asset management and property management services.















On lettings, income grew 6% during the period and pipeline volumes are up 19% year on year at 31 October with pipeline value up by 23% year on year for the same period.

Marsh & Parsons opened three new branches in 2013 and continues to trade in line with expectations.

In June 2012 an additional PI provision of £17.3m was made due to the deterioration in claims experience relating to the 2004 to 2008 high risk lending period. LSL said this was an “industry-wide problem.”

Therefore it is currently expected that an additional exceptional charge of c£12.0m (c£9.2m after tax) will be made in the financial accounts for the year ending 31st December 2013 in order to increase the PI provision.

It said: “A number of risks and uncertainties remain, in particular the actual monthly run rate of new claims, the date at which the high rate of claims will significantly reduce, and the average cost per case both for existing open claims and for claims yet to be received. The cost of these factors could differ materially from the Board’s estimates, which could result in a further provision being required.”

The statement said: “With the recent launch of the Help to Buy Mortgage Guarantee Scheme, the outlook from lenders continues to be positive and as a result the Board is optimistic that market growth will continue throughout 2014.”

(Picture shows chairman Simon Embley)

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