LSL Property shares tumble after challenging first half

4th Aug 2015 10:05

(ShareCast News) - Shares in LSL Property fell after the company posted an 80% drop in profit before tax.At 0929 BST shares were down by 6.6% to 350p, after the property firm posted first half pre-tax revenue of £6.2m, down from £31.4m the year prior.Management said it was confident in meeting full-year expectations despite revenue being broadly flat, up to £140.2m from £139.8m.Operating profit fell to £10.3m from £15.1m, by 32%, but LSL said year on year operating profit would grow in the second half.Organic revenue was up by double digits, LSL Property said, delivered by the lettings and financial services businesses.LSL said it was positive for the second half of the year due to improving housing market conditions, and because it had acquired Thomas Morris in February which upped its lettings outlook.Analysts at Numis, which held an 'add' rating and target price of 444p, said the outlook was a reverse of last year, when the first half was stronger than the second."Whilst this does mean some risk remains around numbers, we think the valuation attractions of the business mean that LSL should be a good performer in the medium term," Numis said.