LSL set for dramatic profits recovery

08 May 2009

In 2008, they threw the book at property services group, LSL.

The company used a strategy of generating cash flow from surveying and other related property services to build a growing chain of estate agents and thereby benefit from higher levels of activity in the property market.

It also used borrowings to grow faster. The result was a business built for growth that was exceptionally vulnerable to falling activity levels and tightening credit. The results were scary.

Last year, instead of the expected leap in profits fuelled by winning some chunky contracts in 2007 from the likes of Barclays and Cheltenham & Gloucester, sales plummeted from £219.5m to £161.8m and a profit of £23.3m turned into a £3.3m loss.

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