LSL Property Services Boosts H1 Profit by 11% on Strong Surveying Performance

LSL Property Services announced a 3% year-on-year increase in group revenue for the first half of fiscal 2026, supported by an 11% rise in underlying operating profit to £15.9 million. The company stated that trading since the period ended has met expectations, keeping it on track to achieve its full-year financial targets.

First-Half Financial Highlights

According to its trading update, LSL maintained a strong financial position through the first half. The company reported a return on capital employed of 36% and a cash conversion rate of 91%.

Key financial metrics reported by the company include:

• Underlying Operating Profit: £15.9 million, an 11% increase from H1 2025.
• Net Cash: £22 million.
• Share Buyback: Completed £4.8 million of its planned £12 million share repurchase program.

Divisional Performance

Ad

Performance varied across LSL's business segments, with its Surveying & Valuation division leading growth. The Financial Services unit saw a planned decline in profit due to strategic shifts and investments.

• Surveying & Valuation: This division was the standout performer, with revenue climbing 6% to £56.2 million. Underlying operating profit in the segment grew 11%, and its margin expanded by 100 basis points to 23.3%.
• Financial Services: While mortgage revenue grew 8%, total segment revenue fell 3% to £22.8 million. The company attributed a £0.9 million decline in underlying operating profit to £3.4 million to its strategic exit from some protection-only firms and ongoing investment in a new customer relationship management system.
• Estate Agency Franchising: This segment posted 2% revenue growth, which translated into a 24% increase in underlying operating profit and a 30% margin. The franchise network also expanded by 13 locations.

Outlook and Transformation Program

LSL's management confirmed that the board's expectations for fiscal 2026 remain on track, with market consensus for underlying operating profit between £33 million and £34 million, excluding its Pivotal joint venture.

Alongside its results, the company launched a new Transformation program designed to create a simpler operating structure. The initiative targets at least £5 million in annualized benefits, with exceptional implementation costs of £4 million spread across 2026 and 2027. The program is intended to support LSL's long-term goal of increasing its group underlying operating margin to above 20%.