Independent Auditor’s Report to the Members of
LSL Property Services plc
We have audited the group financial statements of LSL Property Services plc for the year ended 31st December 2012 which comprise the Group
Income Statement, the Group Statement of Comprehensive Income, the Group Balance Sheet, the Group Statement of Cash Flows, the Group
Statement of Changes in Equity and the related notes 1 to 33. The financial reporting framework that has been applied in their preparation is
applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work
has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and
for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the
company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors’ Responsibilities Statement set out on page 27, the directors are responsible for the preparation of the group
financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the group
financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to
comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the
financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting
policies are appropriate to the group’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant
accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-
financial information in the Annual Report & Accounts to identify material inconsistencies with the audited financial statements. If we become aware
of any apparent material misstatements or inconsistencies we consider the implications for our report.
opinion on financial statements
In our opinion the group financial statements:
• give a true and fair view of the state of the group’s affairs as at 31st December 2012 and of its profit for the year then ended;
• have been properly prepared in accordance with IFRSs as adopted by the European Union; and
• have been prepared in accordance with the requirements of the Companies Act 2006 and Article 4 of the IAS Regulation.
opinion on other matter prescribed by the companies Act 2006
In our opinion:
• the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial
statements; and
• the information given in the Corporate Governance Report set out on pages 33 to 39 with respect to internal control and risk management
systems in relation to financial reporting processes and about share capital structures is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
Under the Companies Act 2006 we are required to report to you if, in our opinion:
• certain disclosures of Directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit; or
• a Corporate Governance Statement has not been prepared by the Company.
Under the Listing Rules we are required to review:
• the Directors’ statement, in relation to going concern;
• the part of the Corporate Governance Report relating to the Company’s compliance with the nine provisions of the UK Corporate Governance
Code specified for our review and
• certain elements of the report to shareholders by the Board on Directors’ remuneration.
other matter
We have reported separately on the parent company financial statements of LSL Property Services plc for the year ended 31st December 2012 and on
the information in the Directors’ Remuneration Report that is described as having been audited.
Stuart Watson (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
Leeds
28th February 2013
58 ANNUAL REPORT AND ACCOUNTS 2012