LSL Property Services (LSL) H1 2024 earnings summary

Executive summary

• Strategic transformation completed, resulting in a more streamlined and agile group focused on organic growth and shareholder returns.

• Underlying operating profit rose 354% to £14.4m, reflecting robust performance and successful transformation, with results in line with upgraded expectations and materially ahead of prior year.

• Revenue increased 18% to £85.4m, with strong market share gains across all divisions and cost reductions following restructuring.

• Board expects full-year profit significantly above 2023, with confidence in delivering higher returns.

• Strong market positions across Financial Services, Surveying & Valuation, and Estate Agency Franchising, with increased market share in key segments.

Financial highlights

• Group revenue rose 18% to £85.4m; like-for-like revenue up 27%.

• Group underlying operating profit increased 354% to £14.4m; operating margin improved to 17% from 3%.

• Profit before tax up 85% to £13.8m; basic EPS 9.9p, adjusted basic EPS 11.0p, up 323%.

• Net cash at 30 June 2024: £32.5m, with 81% cash flow conversion.

• Interim dividend maintained at 4.0p per share.

Outlook and guidance

• Full year performance expected to be in line with raised expectations and materially ahead of 2023.

• Focus remains on organic growth, technology investment, and enhancing shareholder value.

• Well-positioned for future growth, with ongoing investment in data, technology, and franchisee support.

• Trading improved in H1 2024, supported by better market sentiment and lower mortgage rates.