LSL Property Services has reported preliminary results for the year to 31 December 2025, with underlying operating profit rising to £32.6m from £27.8m the previous year.
The group recorded an underlying operating margin of 18%, with results in line with board expectations. It also reported continued cash generation and ongoing returns to shareholders through dividends and an expanded share buyback programme.
The company said it expects to deliver further profit growth in 2026.
Adam Castleton, Group Chief Executive of LSL, commented: “2025 has been a year of strong delivery and building momentum for LSL. We improved profitability across each division, achieved record margins and generated strong cash, while continuing to invest for future growth.
Markets are evolving, and so are we. 2025 has been a year of significant activity for the Group. We are focused on disciplined execution and converting the scale and capability of the Group into sustained profit growth and continued high returns on capital. Trading in 2026 has been in line with our expectations.”
FINANCIAL HIGHLIGHTS 1
· Group Revenue of £182.9m (2024: £173.3m6). Revenue up 6%, maintaining strong market share in all three Divisions
· Group Underlying Operating Profit2 of £32.6m (2024: £27.8m6). Up 17%, including over £1m of NIC tax increase
· Group Underlying Operating Margin at 18% (2024: 16%). A record high, surpassing the 15-year high reported in the prior period
· Group Operating Profit of £22.6m (2024: £21.9m). Up 3% after exceptional costs of £5.1m (2024: £4.1m)
· Adjusted Operating Cash Flow3 of £29.8m (2024: £31.1m) with cash conversion of 91%
· ROCE of 35% (2024: 32%). With higher returns under the new operating model compared to historical levels (2016 – 2023: 18%)
· Net Cash of £27.8m3 at 31 December 2025 (31 December 2024: £32.4m; 30 June 2025: £22.0m)
· Full year dividend of 11.4p per share (2024: 11.4p), with final dividend maintained at 7.4p per share reflecting strong balance sheet and Board’s confidence in prospects.
· The £7m share buy-back programme is now complete. A newly enlarged £12m share buy-back programme was launched in January 2026
STRATEGIC AND OPERATIONAL HIGHLIGHTS
The Group’s performance reflects the quality of its underlying businesses and the benefits of a simpler structure. We are making better use of the combined strengths of LSL, with a clear focus on broadening our commercial reach and improving structural cost effectiveness. In this regard, 2025 has been a year of significant activity as we have executed on our plans to drive Shareholder returns:
Innovation, data and technology
· We are actively adopting and deploying technology across our business to enhance capability and extend our service offering. We have signed our first Automated Valuation Model (AVM) contract with one of the UK’s largest lenders, with significant partner interest in future development and adoption; reflecting Surveying & Valuation Division’s product suite expansion and commitment to technological innovation. e.surv is the residential property valuation market leader in the UK through its comprehensive property risk expertise and is the only provider that offers AVM, remote and physical property valuations.
· Roll-out of the new broker operating platform, (including CRM), continues in the Financial Services Division to drive productivity.
· Deployment of digital solutions delivering process automation and supporting targeted identification of additional service opportunities particularly in the Surveying & Valuation Division.
Continuing to add scale
· Financial Services Division market share increased, with our overall share of the UK purchase and remortgage market increasing to 12.0%5 (2024: 11.8%).
· B2C Revenue growth of 16% on last year in Surveying & Valuation Division.
· Ten lettings books acquisitions by franchisees and six new branch openings in Estate Agency Franchising Division. Strong pipeline for further transactions in 2026.
· In January 2026, the Group completed the small bolt-on acquisition of National Search Service (NSS), a leading property search company, enhancing LSL’s conveyancing service proposition in the Estate Agency Franchising Division. The acquisition is expected to be earnings accretive in year one.
Enhancing our expertise and culture
· Record levels of employee engagement at 77% (2024: 73%).
· Winner of 2025 Moneyfacts Awards – PRIMIS, Mortgage Network of the Year and e.surv, Best Surveying Service of the Year.
· David Tilak joined as Group CFO in January 2026 bringing over 25 years’ experience in strategic, financial and operational roles across complex multinational businesses.
Leveraging the strengths of the Group
· Strengthened cross-Divisional working across LSL, reinforcing strategic relationships with lenders and partners, developing commercial alignment and cross sell opportunities.
· Commenced organisational design work to evolve shared functions in support of scale and improved coordination across the Group.
Other operational highlights
· Pivotal Growth JV continues to gain scale with 24 acquisitions to date with a strong M&A pipeline. Pivotal secured external committed debt funding, repaying shareholder loans, with no anticipation for further Shareholder cash investment.
· Central costs reduced to £10.2m (2024: £11.1m).
· Total shareholder return (dividend and share buyback) of £16.8m (2024: £12.6m).
CURRENT TRADING AND OUTLOOK
We have made a positive start to the year across the Group, with trading in our businesses in line with expectations and our end markets operating in line with our assumptions. Our current performance supports our expectation of delivering a further increase in profits in 2026.
Since year end, we have continued to remain active across the Group. In Estate Agency Franchising, we completed the acquisitions of NSS and three further lettings books and have developed a healthy pipeline of lettings book acquisitions and other opportunities to increase our footprint. In Financial Services, the roll-out of our broker operating platform continues as planned, which will support improved productivity and product penetration. Across the Group, we remain focused on operational efficiency and cost management as we scale the Group through targeted investment and commercial execution. We are investing in digital solutions, data science, and AI in the Group, supporting productivity, enhancing decision making and complementing the professional expertise within our businesses.
The macroeconomic and geopolitical environment remains uncertain, with renewed concerns around inflation and interest rate expectations contributing to near-term uncertainty. We have not seen any adverse impact on trading across the Group in recent weeks, with front-end metrics remaining stable. We have seen some short-term strength in mortgage activity driven by changes to product pricing. With daily granular data across the residential property and mortgage ecosystem, we have clear visibility of leading indicators of demand and can respond accordingly.
We continue to run the business with discipline and a clear focus on performance and structural cost effectiveness. The Board remains confident in the Group’s short and medium-term prospects and continues to support disciplined investment across our businesses to strengthen capability, enhance returns and drive growth.
FINANCIAL SUMMARY
Key Financials1 | 12 months to 31.12 2025 | Restated6 12 months to 31.12 2024 | Year on year change |
Group revenue (£m) | 182.9 | 173.3 | 6% |
Group underlying operating profit2 (£m) | 32.6 | 27.8 | 17% |
Group underlying operating margin (%) | 18% | 16% | 180bps |
Group operating profit (£m) | 22.6 | 21.9 | 3% |
Profit before tax (£m) | 23.1 | 23.1 | 0% |
Cash flow from operations (adjusted)3 (£m) | 29.8 | 31.1 | (6)% |
Net cash3 at 31 December (£m) | 27.8 | 32.4 | (14)% |
Basic earnings per share (pence) | 16.6 | 17.4 | (4)% |
Adjusted basic earnings per share4 (pence) | 24.4 | 21.1 | 16% |
Dividend per share (pence) | 11.4 | 11.4 | – |
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