LSL achieves record revenues in H1 2021

LSL Property Services announced this morning a strong performance in the first half of this year, as well as significant progress in implementing its strategy for growth.

The company reports record Group H1 2021 revenue and underlying operating profit with increasing balance sheet strength, which it says will enable further investment to deliver the Group’s ambitious growth strategy.

Group Revenue in H1 2021 reached £166.5m, 45% higher than the £114.m recorded in H1 2020.

Underlying operating profit of £27.3m was posted, significantly ahead of £9.7m in H1 2020, driven by continuing financial services growth, supported by increasing market share in estate agency and significant increase in surveying in very strong housing market conditions.

Profit before tax increased to £25.5m, up from £2m in H1 2020.

The figures released this morning also show a very strong balance sheet, and the first time LSL has
reported a Net Cash position since IPO in 2006, with Net Cash of £17m.





Group Revenue (£m)




Group Underlying Operating Profit (£m)

(post COVID-19 costs)




 Group Underlying Operating margin (%)

(post COVID-19 costs)




Exceptional Gains (£m)


Exceptional Costs (£m)




Group operating profit (£m)




Profit before tax (£m)




Basic Earnings per share (pence)




Adjusted Basic Earnings per share (pence)




Net Cash / (Net Bank Debt) at 30 June (£m)




Interim Dividend (pence)




nm: not meaningful


LSL reports that its financial services division saw underlying operating profit of £7.8m, increased by
68% with underlying operating margin rising to 20%.

In H1 2020, Covid-19 costs of £0.3m were recognised in the financial services division. Stated before Covid-19 costs, underlying operating profit in H1 2020 was £4.9m and underlying operating profit growth in H1 2021 was 59%

LSL mortgage completion lending increased to £19.3bn, representing 9% of market.

Financial adviser numbers increased 13% year-on-year to 30 June 2021. The pipeline of advisers also grew over the significant pipeline brought forward at 31 December 2020.

Surveying and valuation services division saw underlying operating profit of £11.4m, increased by 179% (H1 2020: £4.1m). In H1 2020, Covid-19 costs of £0.7m were recognised in the surveying division. Stated before COVID-19 costs, underlying operating profit in H1 2020 was £4.9m

Surveying underlying operating margin strengthened considerably to 24.7% (H1 2020: 13.1% post Covid-19 costs), benefiting from operational efficiency and improved income per job

The Estate agency division increased its residential market share in its core catchment areas to take full advantage of favourable market conditions.

Estate agency underlying operating profit was £12.5m, up from £2.4m in H1 2020. In H1 2020, Covid-19 costs of £1.7m were recognised in the estate agency division. Stated before Covid-19 costs, underlying operating profit in H1 2020 was £4.1m

Continued progress in executing the Group’s growth strategy

On 8 July 2021 and 26 May 2021 LSL announced the sale of investments in non-core businesses to simplify the Group structure. The sales generated £41m of capital to deploy into new opportunities and accelerate the Group’s growth strategy, in particular Financial Services

Announcement on 27 April 2021 of agreement to provide mortgage and protection advice services to The Property Franchise Group’s network of over 400 franchisee estate agency offices

On 23 April 2021, LSL announced the creation of £200m Pivotal Growth joint venture with Pollen Street Capital, to create a “buy-and-build” mortgage broker which is now established and in position to make its first acquisitions

Announcement on 11 February 2021 of the acquisitions of the business and assets of Mortgage Gym Limited and a 60% stake in Direct Life Quote Holdings Limited (“Direct Life”) as part of LSL’s digital strategy to drive significant growth in mortgage and protection business

Investment being made in Mortgage Gym technology and the infrastructure required to deliver the strategic partnership with The Property Franchise Group (“TPFG”). The Board is confident these initiatives will deliver significant value to shareholders over the medium term

Further senior appointments made to improve management bench strength

In line with the Board’s expectations, expected activity in LSL’s markets has slowed since the 30 June stamp duty deadline, meaning that LSL’s Mortgage and Protection completion volumes, Surveying Revenue and instructions, and residential exchange activity have naturally reduced following the record market levels experienced in June

LSL retains a strong Residential Sales exchange pipeline as at 31 July 2021, at around 20% more than 2020 at the comparable date, and in-line with the large pipeline reported at 31 December 2020. Fall-throughs are at normal levels

The Board says that it is encouraged by the significant steps taken to deliver its financial services led growth strategy and by the strong financial performance of its estate agency and surveying divisions. The Board is confident that the Group will deliver a full year 2021 group underlying operating profit in line with its expectations and declares an interim dividend of 4 pence per share

At the 2020 Prelims, LSL restarted guidance with an improved growth profile, with Financial Services at the forefront. The Board confirms that LSL is on track to deliver its short and longer-term strategic and financial targets

Trading in the first half of 2021 was assisted by favourable housing market conditions. However, the Group’s increasingly diversified revenue streams, and in particular the significant growth opportunities previously identified and on which management has started to execute, mean the Group is less dependent on housing market activity levels to drive medium term growth

Following the reinstatement of the dividend policy at the 2020 Prelims, the Board has declared an Interim dividend of 4.0 pence per share (H1 2020: Nil)

David Stewart, group chief executive, said: “LSL performed strongly in the first half of 2021, as we took advantage of favourable market conditions whilst making significant progress in executing our strategy, which places Financial Services at the forefront, as described at the time of publishing our 2020 results.

David Stewart

“The investments we are making in technology and Financial Services will deliver tangible benefits from 2022 and we are confident they will generate substantial value for shareholders in the medium term. The opportunities for new value-add services in Surveying and Valuation Services further underpin our future growth, while we continue to perform well and take market share in Estate Agency.

“Our strategic progress also included the disposal of our non-core investments in LMS (May 2021) and TM Group (July 2021), for a combined £41m, as we focus both management time and capital on activities offering the best long-term return to shareholders. These successful divestments mean we have a very strong balance sheet, including cash resources of around £43m at 31 July 2021, positioning us to make further investments to secure our strategy. We continue to add depth to the management team and have made a number of senior appointments. This will support our strategic delivery and our ability to drive performance improvements from the business.

“The Group’s results in the first half position us well for meeting the Board’s expectations for 2021, and we look forward to delivering further organic and acquisitive growth in the coming years.”


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  1. AgencyInsider

    Yet another agency group ‘performing strongly’.

    Frankly, if you could not perform strongly in the recent market conditions you should be looking at another line of business!

    1. Dick Value

      How can you thumb down this comment and take yourself seriously?

      1. jan - byers

        Who gives a flying whatsit a what other companies are doing


        1. Hillofwad71

          I guess those who have a vested interest  ie shareholders which include many of those engaged in  estate agency

    2. PeeBee

      “Frankly, if you could not perform strongly in the recent market conditions you should be looking at another line of business!”
      Whilst I totally ‘get’ where you are coming from (and it certainly wasn’t me that gave you the downthumb), as a self-titled “insider” to our industry you must also ‘get’ and acknowledge that there are a myriad of circumstances which can affect performance metrics, in every market situation.  A strong market does not guarantee a strong performance from all who are involved within it.  High transaction numbers lead to low availability – and the inevitable scramble to the bottom of the barrel on fees that usually starts with the weaker Agents – but not always
      Record turnover is immaterial if you lose even one penny on the transaction – and it’s a stark, but often overlooked, reality that a mere two pennies are the difference between profit and loss.
      And every transaction that one Agent succeeds with is one that another didn’t get – often for the wrong reasons – and which could have made the difference needed to say they performed strongly rather than simply existing and hoping the rub of the green goes their way next time.  Or the next…

  2. Hillofwad71

    Impressive Results .
      EYE remarkably quiet on the real big story hitting social media.
       The David V Goliath battle won  by former estate in NTSLEAT  V ChrisWood who have dissipated limited   resources in legal fees  in a disgraceful  attempt  to discredit  him for  whistleblowing .  
    Earlier this  year principal solcitor Robert Brown  said  in defining NTSLEAT role in enforcement said
    “We don’t bite and we certainly don’t sting…unlike the contents of the schoolchild’s beehive.”
        You would never have guessed  

    1. smile please

      Given Eye was very happy to publicise the issues which could have been very distressing for Chris in the first place it’s frankly disgusting they have not helped restore his name.

      1. Hillofwad71

        Old Topsham  only a perfunctory mention too of the case ,nothing on Twitter

        However the case  kicked off  about Purplebricks but 4 mentions by Toppy  of Boomin in 24 hours!

    2. PeeBee

      ^ ^ ^ THIS ^ ^ ^

  3. majortom1

    Will they issue a dividend if they haven’t paid back the Gov support monies and how will this sit.


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