Business Review
Directors’ Report and Business Review
During the year, the Nominations Committee LSL has also in 2012 continued to review current trading and outlook
considered at length the composition of gender diversity across the Group building on Market conditions remained challenging during
the Board and I am delighted that Adrian Gill the gender diversity survey undertaken and 2012 with transaction levels at less than half
was appointed to the Board as an additional reported on in 2011. Further detail of this study of historic norms. It is still too early to judge
independent Non Executive Director with and its conclusions are set out in our Corporate whether there will be a significant positive
effect from 10th September 2012. Adrian Social Responsibility Report. impact on the market from the Government’s
brings very relevant experience to the Board As Chairman, with the responsibility for ‘Funding for Lending’ scheme. Overall the
having been on the board of Connells Limited, leadership of the Board I personally review Group retains a cautious view of the market.
one of the largest and most successful estate LSL is committed to its strategy of driving
its effectiveness on all aspects of its role and
agency businesses in the UK. organic growth in all parts of the business,
encourage feedback. This is in addition to
Amongst our Non Executive Directors, we regular evaluations of each Director to ensure which will more than offset the remaining
now have experience in strategy, estate that all Board members receive regular and first half year impact of the C&G contract in
agency, surveying, financial services, the relevant updates to assist them in their roles the Surveying Division. We intend to invest
residential housing sector, retail and marketing, ensuring the continual refreshment of skills further to maintain our excellent progress in
operations, business services, entrepreneurial and knowledge. Lettings but also to increase market share in
private and public companies, finance, Estate Agency, to maximise the new branch
customer and employee matters and corporate People opening programme in Marsh & Parsons and
governance. The number of Group employees decreased to win new business in corporate Lettings and
Other Board changes during the year included slightly by 2% to 4,754 (2011: 4,831) due Asset Management. We will also continue to
the retirement of Paul Latham, Non Executive principally to the expiry of the C&G contract. grow Financial Services revenue and to expand
Director on 1st October 2012 and Alison We did however welcome a large number of the provision of Surveying Services to private
Traversoni, Executive Director for Surveying new colleagues to the Group as a direct result buyers. Trading to the end of February 2013 has
who stepped down with effect from 31st of the success of our strategy of pursuing both been in line with expectations. Progress on all
December 2012, for family reasons. organic and acquisitive growth. I would like to key initiatives has been running to plan.
welcome all new colleagues to the Group and The Group’s balance sheet is strong with
We recognise the benefits of gender diversity
to wish them every success in their careers relatively low levels of gearing underpinned by
and the current Board composition includes
one female Director, Helen Buck, who is an with LSL. strong cash generation. We will continue with
Independent Non Executive Director. Whilst The delivery of our strong financial results in a prudent approach to leverage but we still
we remain of the view that the setting of 2012 was based on the commitment of all of have considerable scope to pursue a strategy
targets for the number of female directors our colleagues to providing the best possible of further organic investment initiatives and
on the Board is not necessary and that we service to all of our customers, invariably selective acquisitions. The Board is confident
will continue to appoint on merit, I will ensure against challenging market conditions. I would that this strategy will deliver increased
that our searches take into account diversity, like to thank all of our employees for their hard shareholder value into the medium term, even
including gender. work and commitment during the year. without a recovery in market conditions.
Roger Matthews
chairman
28th February 2013
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