LSL Property Services increased first-half profit despite weaker residential sales, helped by a sharp improvement in its estate agency franchising business.
Group revenue rose 3% to £92.3m in the six months to 30 June 2026, up from £89.7m a year earlier.
Underlying operating profit increased 11% to £15.9m, while statutory operating profit climbed 14% to £12.5m.
The group’s underlying operating margin increased from 16% to 17%.
LSL said residential sales transactions were 4% lower than in the first half of 2025. Last year’s figures included a spike in activity ahead of the Stamp Duty changes.
The London market was softer, although LSL said it has limited exposure to the capital.
Estate agency profits jump 24%
LSL’s Estate Agency Franchising division recorded a particularly strong first half.
Underlying operating profit increased 24% to £3.9m, while revenue edged 2% higher to £13.2m.
The division’s underlying operating margin reached a record first-half level of 30%, helped by restructuring carried out last year.
LSL also expanded its franchise network by 13 branches. The increase followed the acquisition of a small South Coast franchise network and growth among existing partners.
The group supported franchisees with the acquisition of seven lettings books. This helped increase the number of properties under management by 4% to 38,660.
LSL also invested in its end-to-end conveyancing proposition, with plans to offer services across the wider group.
£5m transformation programme
Alongside its results, LSL announced a group-wide transformation programme aimed at simplifying the business and cutting duplication.
The company expects the programme to deliver at least £5m in annualised benefits as implementation progresses through 2027.
LSL expects to spend £4m implementing the changes across 2026 and 2027.
The group is targeting an underlying operating margin of more than 20%.
Chief executive Adam Castleton said: “LSL performed well in the first half, delivering further profit and margin growth and strong cash generation. Our markets developed broadly as expected despite prevailing negative sentiment.
“We launched a Group-wide transformation programme expected to improve our structural cost-effectiveness and leverage our scale. The programme will simplify how we operate, strengthen our capabilities and support further structural improvement in margins.”
Surveying revenue rises
LSL’s Surveying & Valuation division increased revenue by 6% to £56.2m.
Underlying operating profit rose 11% to £13.1m, while its margin increased from 22% to 23%.
Mortgage revenue increased 8% and LSL maintained an 8.9% share of total mortgage lending.
However, total Financial Services revenue slipped from £23.5m to £22.8m. Underlying operating profit fell from £4.3m to £3.4m.
LSL attributed the decline mainly to its previous exit from several protection-only firms and continued investment in a new CRM system.
The group also completed a small regional acquisition after the period ended. LSL expects the deal to add around 50 advisers to its PRIMIS network.
Full-year expectations unchanged
LSL said trading since the end of June has developed as expected.
The board remains on track to meet its full-year 2026 expectations and anticipates another increase in profit.
The company had net cash of £22m at the end of June and maintained its interim dividend at 4p per share. Its £12m share buyback programme remains on course for completion by January 2027.
