Operating profits at Your Move plunged last year from over £5.5m to just under £1.2m, its newly-issued accounts have revealed.
While revenue barely altered from the year before – down just 0.78% – operating profits sunk 78% to £1,193,991, down from £5,526,000 in 2015.
Its pre-tax profits fell from £5.526m to £346,000.
Bottom line profits were just £87,000, a massive fall from the £4.45m made in 2015.
The firm says in its report that operating profit reduction was driven by the drop in revenue, increased amortisation and investment in a TV campaign.
It also closed 12 owned branches, cutting the number back to 203. The number of franchised branches fell from 68 to 66.
Your Move, a wholly owned subsidiary of LSL Property Services whose other brands include Reeds Rains and Marsh & Parsons, made £31.955m from exchange income last year, down from £35.716m in 2015; lettings produced £26.260m, up from £23.930m; financial services brought in £21.109m, up from £19.982m; and ‘other’ activities brought in £9.814m, down slightly from £10.210m.
Altogether, revenue was £89.138m, little changed from £89.838m the year before.
However, restructuring costs including redundancies cost it £1.090m last year as a result of the 12 branch closures.
The number of staff reduced slightly from 2,076 to 2,007. The highest paid director was paid £185,621 excluding pension costs.
Your Move’s financial liabilities in relation to acquisitions grew from £621,000 in 2015 to £10.915m last year. The report explains: “The contingent consideration relates to amounts payable in the future on acquisitions.” Sums are payable between three and five years after the acquisition date, depending on profitability.
Your Move’s bank overdraft also grew last year, from £6.708m in 2015 to £13.608m in 2016.
In March, LSL reported on its overall group results for last year, with pre-tax profits at £63.5m, up 65% from pre-tax profits in 2015. The firm made an exceptional gain on the sale of almost £33m worth of Zoopla shares.