Group Highlights:
- Group revenue increased by 2% to £103.4m (2010: £101.1m)
- Group Underlying Operating Profit(1) was £11.8m (2010: £13.4m). Reduction in profit as expected after planned investment of £2.6m in growing market share in estate agency
- Operating margin was 11.5% (2010: 13.3%).
- Profit before tax decreased to £6.5m (2010: £19.7m) as 2010 included an exceptional gain of £13.4m arising on acquisition of Halifax Estate Agencies Limited.
- Basic earnings per share 4.7p (2010: 19.4p). Adjusted basic earnings per share decreased by 12.5% to 7.7p (2010: 8.8p)
- Half Year dividend increased by 12% to 2.8p per share (2010 : 2.5p)
- Continued strong cash generation. Net debt reduced by £8.1m to £6.2m at 30 June 2011 (30 June 2010: £14.3m)
Surveying Performance
- Underlying Operating Profit was £12.8m (2010: £15.2m). Surveying operating margin 33.3% (2010: 36.0%)
- Revenue decline driven by reduction in mortgage approvals and particularly strong comparatives for key lenders
- Strong growth in provision of surveying services to private buyers resulting in revenue of £1.3m during the period
Estate Agency Performance
- Underlying Operating Profit was £0.6m (2010: loss of £0.6m)
- Market share increased to 4.5% (2010: 4.0%) and pipeline growth of 5% against the backdrop of a further fall in mortgage approvals
- Profit held back by planned £2.6m investment in people and call centre
- Agency branches revenue growth supported by improved contribution from lettings up 19% to £13.6m and financial services up 42% to £8.7m. Ex Halifax Estate Agency branches on track for three year profit improvement plan.
Roger Matthews, Chairman, said:
“Against the backdrop of an ongoing challenging housing market, we have continued to strengthen our market positions and drive new revenue streams in both Estate Agency and Surveying.
"As a result, the Board remains confident of delivering further progress in 2011, a confidence that is reflected in our decision to announce a 12% increase in the interim dividend payment to 2.8p per share.”
