Overview
LSL Property Services reported underlying operating profit of £32.6 million for the fiscal year ended 2025, effectively in line with analyst expectations of £32.2 million. The board maintained its outlook for additional profit growth in fiscal 2026.
Balance sheet and returns
For the year, LSL delivered a return on capital employed of 35% and closed with net cash of £27.8 million. The company announced a total dividend of 11.4 pence per share for the period. In January, management also announced a £12 million share buyback programme.
Trading and market conditions
Management reported that trading so far in 2026 has been in line with expectations and that end markets are performing as anticipated. The company noted a degree of short-term strength in mortgage activity, which it attributed to recent changes in mortgage pricing.
Operational performance by division
Within the Surveying and Valuation division, LSL recorded an increase in underlying operating profit driven by revenue growth of 8%. The Financial Services division posted flat revenue for the year. Corporate costs fell on a year-over-year basis.
Joint ventures and acquisitive strategy
The Pivotal joint venture contributed £1.7 million in profit during the period, above an estimated contribution of £1 million. Pivotal Growth generated revenue approaching £100 million in fiscal 2025 and completed two additional acquisitions since the year end, taking its total acquisitions to 24. The joint venture reported a strong pipeline, has repaid shareholder loans to LSL, and indicated that no further shareholder cash investment is anticipated.
During fiscal 2025 LSL completed ten lettings book acquisitions and opened six estate agency branches. Since the year end the group has acquired NSS, a property search company, and three further lettings books. Management described the pipeline of lettings book opportunities as healthy and set a target of 50 lettings book acquisitions over a three-year period.
Technology and product initiatives
In Financial Services, LSL is continuing the roll-out of its broker operating platform to support productivity improvements and increase product penetration. The Surveying division secured its first Automated Valuation Model (AVM) contract with one of the UK’s largest lenders, and the company said there is significant partner interest in further AVM development.
Outlook
Management reiterated that current trading is consistent with expectations and reaffirmed the view that further profit growth is expected in fiscal 2026. The company’s combination of cash generation, returns, acquisitive activity in lettings and progress across joint ventures and technology initiatives form the basis of that outlook.
Note: This article presents the company-reported results, divisional performance and management commentary as released by LSL Property Services for the fiscal year ended 2025.