Lsl Property Services Share Discussion Threads

[handycam] 15/8/2008 17:55

The banks won't let them pay a dividend, simple as that.

[theoriginalface] 08/8/2008 08:35

very true about the dividend, impossible for them not to but doesn't send out a good signal. They've reserved comment on the full year divi, but realistically there is no chance of that being paid imo.

just biding time until there's another warning or details of further closures i guess

[davidosh] 07/8/2008 20:39

Whenever a company cuts out a dividend payment you just know that the finances are stretched and whilst very sensible it leaves little for shareholders to hope for in the next couple of years.

[madbadtrader] 07/8/2008 20:24

On the way down! Cut your losses, get out now ....last one out switch the lights off!

[theoriginalface] 07/8/2008 10:11

think one of the reasons it bounced off 80p was miti closing out 50k shares. oddly in the short term don't think there'll be much to move it either way, think the market conditions will remain, but might be a while til there's another announcement.

agree broadly with your prognosis madbad - think there will be a much larger exceptional by the year end, more closures, another profit warning and intangible impairments (which could be significant). Think the BS looks very shakey without a fundraising.

[madbadtrader] 07/8/2008 10:03

I can see where you are coming from miti - some shorters will move on having got in (on their short) before the results anticipating a big drop and now want to move on - probably explains why it came back up from 80p that it opened at. However unless Harris increase their stake, no-one in their right mind would buy any of these - next announcement will be job losses, would not suprise me if there is fund raising and I bet any money there will be another profits warning before year is out.

[miti 1000] 07/8/2008 06:51

madbadtrader......I expect it to bounce as Harris increase their stake...results out of way and market has not responded whatsoever to the bad news....short term, I think its more likely that shorters will close and move on for now.Time will tell.

[davidosh] 06/8/2008 16:03

Madbadtrader..This still looks a very good short to me and even the surveying side is falling on a like for like basis which seems to have been hidden.

[madbadtrader] 06/8/2008 14:37

Why close the short? This company is stuffed (by their own admission) until the housing / mortgage market improves - i.e not for the next few years, by which time the losses will have mounted and with zero profits means....

....Job losses (already hinted at) on the way and probable fund raising - i.e share dilution.

[miti 1000] 06/8/2008 12:10

ok closed my short .........so bought back 50k shares this am which is most of today's volume.

[theoriginalface] 06/8/2008 11:56

A few comments:

* The surveying division turnover rose by 12% to £44.9m (2007: £40.0m) and the
underlying operating profit increased by 32% to
£15.4m (2007: £11.7m). The overall surveying margin, which increased from 29.1% to 34.3%,
was underpinned by a robust re-mortgage market,
last year's major contract wins and strong relationships with lenders.


In July '08 the C&G contract was purchased for £30m. This has added £12m revenue and £6.1m OP onto the surveying results. If you adjust the surveying numbers for this uplift then the like for like figures are decreasing - it is only the C&G element that hides this.

* The estate agency turnover decreased by 25% to £39.4m (2007: £52.8m) and the
underlying operating loss was £4.1m (2007: profit
£6.5m).

* The financial services division turnover fell by 13% to £8.8m (2007: £10.1m) and
the underlying operating loss was flat at £1.1m
(2007: loss £1.1m).

There is £61m (at the YE) goodwill/intangibles relating to the estate agency/fin services parts of the business. If these figures persist in being poor, there have to be significant impairments.

* Exceptional costs for the half year were £3.4m (2007: £ nil) and related
principally to previously reported restructuring costs
(£1.4m), and lease provisions and accelerated depreciation of £1.7m. The business will
continue to review its cost base in light of market
activity levels and further one off costs are therefore possible in the second half of 2008.

Think the last part is preparing for further closures and write offs in the second half.

Net assets as at 30 June 2008 were £38.0m, a reduction of £4.9m from the previous year
end. Net debt as at 30 June 2008 was £61.7m, an
increase of £13m from the previous year end. The Group has a borrowing facility of £95m in
place until July 2010, of which £36.9m was
undrawn at 30 June 2008.

Assets down/debt up/profits gone - time to dig out those banking covenants.

[davidosh] 06/8/2008 09:39

The interest charge on 61.7m and increasing will be far more than just £1.8m annually ...closer to £5m I reckon.

Those surveyors will be getting very quiet now as the remortgage chasing dries up. Only so many borrowers have a chance to remortgage and it will dry up when they are done

[pictureframe] 06/8/2008 07:27

Agreed the balance sheet is mostly intangible assests - need some fundraising to keep it stable. They have banking in place until 2010 but they will need the
market to recovoer by then as I cant see bank giving money so easy next time.

Also interest cost was £1.8 million pounds - that a weight around the neck when loss making. Still standby this is a short candidate

[theoriginalface] 06/8/2008 07:18

I am thinking that with things now loss making, borrowings increasing, gearing increasing - it could really do with a share issue to shore up the balance sheet.

[pictureframe] 06/8/2008 07:13

You are having a laugh this share price is way overpriced !! Market Cap of £91 million - now loss making - divi gone - markets getting worse - Net debt NOW £61.7m at 30 June 2008 (2007: £56.3m) how they gonna pay that back then??

I have gone short today - easy money to be made here imo

[handycam] 06/8/2008 07:07

Agent side losing £10M pa. Negative cash flow a bit like Vanco's explanations.

[theoriginalface] 06/8/2008 06:24

Loss for the HY, presumably will be a loss for the FY. Divi axed. Huge intangibles/goodwill. Increased borrowings.

Not worth £90m imo

[davidosh] 05/8/2008 11:23

I cannot see the results or outlook being pretty tomorrow

[madbadtrader] 05/8/2008 11:14

Anyone holding these should get out now!!! Results day tomorrow - one profit warning already this year.

Although think most people on here are shorting this.

[m.t.glass] 02/8/2008 08:08

"Oh yes, I come down here most mornings to feed the estate agents."

[theoriginalface] 24/7/2008 13:18

LSL had net assets at YE 2007 of £42m, of this £60m was goodwill relating to its estate agency and financial services businesses...if this downturn continues this goodwill is headed for an impairment.

[m.t.glass] 23/7/2008 09:20

The number of new mortgages approved by the major banks fell another 23% in June to a new record low. The British Bankers' Association (BBA) said its members approved just 21,118 new home loans in June, down from 27,499 in May.
The figures were also 67% lower than in June last year...

... a very good indicator of near term trends in the market and suggest that this year's sudden collapse in sales is likely to continue for the rest of the year.