LSL Property Services (LON:LSL) - H1 messages dented by provision
Aug 07th 2012 - Edison Investment Research today published a report on LSL Property Services (LSL.L, LSE:LSL, LON:LSL) entitled "H1 Messages Dented By Provision". In summary, the report says:
The shares fell on the results announcement, with the provision a material unwelcome surprise. UK housing and mortgage data remains weak but the core estate agency business is performing well, with surveying no worse than expected after last year’s contract cancellations. The unexpected £17.3m professional indemnity (PI) provision relates to valuation work in 2004-2008. This figure, added to £20m already provided, is LSL’s best estimate of the full cost of outstanding claims for the period. It reflects a sudden spike in claims during April and May, possibly prompted by lenders’ desire to take advantage of solicitors’ ‘no win, no fee’ terms expected to be unavailable from spring 2013. Provisioning is not an exact science, but LSL has identified c 1,000...
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