LSL hammered by professional indemnity claims
LSL Property Services, the owners of the Marsh and Parsons chain of estate agents, has dropped sharply after revealing a pre-tax loss for the first six months of the year.
LSL Property Services, the owners of the Marsh and Parsons chain of estate agents, has dropped sharply after revealing a pre-tax loss for the first six months of the year.
In the six months to the end of June the firm took a loss of £7.9m compared to a profit of £6.5m in 2011.
The loss came despite a 17% rise in revenues to £120.8m and an increase in operating margin from 11.5% to 12%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The problem for the group has been a large provision for personal indemnity (PI) claims relating to the property boom between 2004 and 2008 and the loss of a surveying contract with mortgage provider Cheltenham and Gloucester.
PI provisions have risen to £17.3m due to a "recent deterioration" in claims. The loss of the C&G contract saw income in the surveying business decrease 10% to £34.4m.
The group's shares had fallen 12% bt 10:54.
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Regulator moves to protect access to cash amid branch closures and disappearing ATMs
News The Financial Conduct Authority has told banks to start assessing if local communities have adequate cash access from mid-September
By Marc Shoffman Published
-
VAT hike on private school fees could come earlier than previously expected
The government could start charging VAT on private school fees as soon as January 2025, according to the latest reports. What does it mean for parents?
By Katie Williams Published