LSL Property Services, a leading provider of residential-property services in the UK, has reported a fall in first-half pretax profit due to challenging market conditions. The company faced difficulties as high inflation and interest-rate increases dampened demand for mortgage products.
For the first six months of the year, LSL posted a pretax profit of £7.1 million ($8.6 million), compared to £8.9 million in the same period last year. Revenue also declined from £110.2 million to £72.5 million.
Despite these challenges, the company remains optimistic about the future. LSL’s board expects the underlying operating profit for the full year to meet their expectations. They believe that the recent decision to hold base rates unchanged will provide stability and improve market sentiment.
LSL has been working towards simplifying its business structure in order to create a more focused and consistent performance throughout market cycles. This strategic progress is aimed at ensuring the company’s long-term success.
In addition, LSL’s board declared an interim dividend of 4 pence per share, which is unchanged from the previous year.
Overall, LSL Property Services is navigating a difficult market environment and is taking steps to adapt and thrive. By simplifying its operations and maintaining stability, the company is positioning itself for success in the future.
For more information, contact Michael Susin at michael.susin@wsj.com.