LSL Property Services has published its interim results for the six months ended 30 June 2025 with group underlying operating profit of £14.8m (H1 2024: £14.4m) and underlying operating margin maintained at 17%.

Results are in line with the board’s expectations with progress across all three divisions, technology enhancements and expansion of the group’s footprint. The board’s expectations for the full year remain unchanged.

Adam Castleton, Group Chief Executive of LSL, commented: “We made positive progress in the first half of 2025, delivering revenue and profit growth, while maintaining operating margin at its highest level for 15 years. We delivered structurally higher ROCE of over 30%, well above historical levels.

“LSL is a well positioned business, as our three divisions add value at all key points in the UK’s property and mortgage lending ecosystem. We have a capital light B2B platform for UK residential property market services. My focus is on empowering our teams, capturing further operational improvements in each division, and seizing the opportunity to leverage more of the Group’s collective strengths. Combined, these should deliver enhanced margins and greater returns for shareholders.

“It is early days in my tenure as CEO, and I am excited about the growth opportunities open to us as a Group. With 2025 on track, we are looking ahead with renewed ambition and confidence about our future.”

Strategic and operational highlights 

The group says its performance demonstrates the strengths of the LSL platform and the benefits of a simpler Group structure. It adds that its operating model remains capital light, cash generative and delivers a high return on capital employed compared with historical levels.

LSL says key highlights during the first half include:

·    Investing for growth in digital and systems:

o  Development and roll-out of a new CRM system in Financial Services, to drive productivity for LSL and its clients

o  Approaching commercialisation of automated valuation models (“AVM”) with our lenders, a new revenue stream for Surveying & Valuation

·    Continuing to add scale:

o  Three new branch openings in Estate Agency Franchising and provided support for three lettings books acquisitions by franchisees

o  Renewed contract with a top three lender and added a new lender in Surveying & Valuation

o  B2C revenue growth of 43% on last year in Surveying & Valuation

·    Other operational highlights:

o  Pivotal Growth JV continues to gain scale with 19 acquisitions to date and a strong M&A pipeline

o  Central costs reduced to £5.0m (H1 2024: £5.5m)

o  Strong year-on-year trading performance of TenetLime acquisition

o  Winner of 2025 Moneyfacts Awards – PRIMIS, Mortgage Network of the Year and e.Surv, Best Surveying Service of the Year

Financial summary 

·    Group Revenue of £89.7m (H1 2024: £85.4m). Revenue up 5% in a recovering market, maintaining our strong market share in all three divisions.

·    Group Underlying Operating Profit of £14.8m (H1 2024: £14.4m). Up 3%, including strategic investments in the business and absorbing NIC tax increase

·    Group Underlying Operating Margin at 17% (H1 2024: 17%). This remained in line with the 15-year high reported in the prior period

·    Group Operating Profit of £11.0m (H1 2024: £13.0m). Exceptional costs of £1.8m (H1 2024: net cost £0.1m)

·    Adjusted Operating Cash Flow of £7.4m (H1 2024: £11.7m). Reduction on H1 2024 a result of the timing of working capital movements around year end December 2024. Last 12 months cash conversion of 95%

·    Last 12 Months’ ROCE of 31% (2024: 29%). Continued higher returns under the new operating model compared to historical levels (2016 – 2023: 18%)

·    Net Cash³ of £22.0m at 30 June 2025 (31 December 2024: £32.4m, 30 June 2024: £32.5m)

·    Interim dividend declared of 4.0p per share (H1 2024: 4.0p) and £1.4m deployed on share buyback programme during the period

Current trading and outlook

LSL reports that it made a good start to H2 and continue to expect the group to deliver a further increase in underlying profit in FY 2025, in line with market expectations. Its end markets have been operating in line with our assumptions. July was the strongest refinancing month of the year so far, as they expected. Mortgage pipelines are above historic norms, underpinning an expected uplift in refinancing activity across the rest of the year.

The board is confident in the group’s prospects and its ability to capture the value accretive growth opportunities ahead underpinned by continued investments.