Chairman’s Statement (continued)
and Financial Services intermediary networks attributed a value equal to the price paid per “The delivery of our strong
increased by 15% during 2012 and has now share when LSL acquired an additional stake in
increased by over 150% over the last three Zoopla in April 2012. The exercise concluded financial results in 2012 was
years as a result of the successful roll out of that a fair value of the Zoopla group was £245m
Financial Services to the ex HEAL branches and at 31st December 2012 and as a result we have based on the commitment
the acquisition of new intermediary networks increased the valuation of our holding by of all of our colleagues to
in 2010. In total the Group arranged mortgage £10.7m to £11.8m. We are excited that LSL has a
lending of £7.1bn during 2012 (2011: £6.8bn) out strategic stake in a group which has such strong providing the best possible
of a total intermediary lending market estimated future prospects.
at £72bn.
service to all of our
The Surveying Division has been impacted by
Marsh & Parsons delivered a good result with the effect of key contract renewals as had been customers.”
instructions increasing by 2% and revenue by expected. In addition, certain key lender clients
2% to £27.3m (2011: £26.6m). Operating profit have reduced their market share. However,
increased by 6% to £7.2m (2011: £6.8m). The we have continued to invest in the provision
new Earls Court branch has performed well of industry leading service levels and have
and a second opening in Kensington that had secured a number of contract renewals. We
originally been planned for the fourth quarter have now worked through the renewal of all
opened in January 2013. The Group is targeting legacy contracts and margins are expected to
four new branch openings in 2013, including stabilise around current levels in the short term.
Kensington.
The main source of growth in the Surveying
Our Asset Management business also suffered Division has been through the provision of
from a challenging market as repossession Surveying Services for private buyers. This
volumes fell by 5% to 33,900 (2011: 35,800). key strategic initiative which was started
Despite this the business once again increased in December 2010 delivered an increase in
market share and revenue increased by 3% revenue of 46% to £4.0m (2011: £2.8m) in the
to £15.6m (2011: £15.2m). A new property year. The fourth quarter revenue run rate was
management contract was won and came £5.0m per annum. The number of distribution
on stream during the year and investment channels has been expanded during 2012 and
is committed in 2013 to win further similar will be developed further in 2013.
contracts.
As reported in July 2012, we have continued corporate governance and Board
to make selective acquisitions and have added The Board is committed to high levels of
to our Estate Agency Division portfolio in the corporate governance as defined by the UK
South East with the purchase of Davis Tate and Corporate Governance Code (Code).
Lauristons during 2012. Both businesses are In respect of 2012, the Board has conducted
performing well and have significant growth an annual review of its effectiveness and that
potential which is one of our key acquisition of its Committees, taking into account the
criteria. We will continue to search for similar balance of skills, experience, independence and
acquisitions funded from our strong cash flows. knowledge of our businesses and we concluded
We increased our shareholding in Zoopla in that the Board and its Committees are effective
advance of the merger with Digital Property and are able to discharge their respective duties
Group and LSL now owns 4.8% of the new and responsibilities effectively.
group. Operating performance has been In addition, whilst no significant issues arose
extremely strong since the merger in the from the annual evaluation, a number of
second half of 2012 and against this positive recommendations were made to further
background the Board has reviewed the improve the effectiveness of the Board and
fair value of the shareholding in Zoopla and these are being implemented.
12 ANNUAL REPORT AND ACCOUNTS 2012