LSL Property Services (LSL) H1 2025 earnings summary

Executive summary

• Revenue grew 5% year-over-year to £89.7m, with underlying operating profit up 3% to £14.8m and operating margin at a 15-year high of 17%.

• All divisions contributed to growth, supported by technology investments and operational improvements.

• Return on capital employed reached 31% over the last 12 months, significantly above historical levels.

• The business continues to invest for growth while maintaining a capital-light, resilient model.

• Board expectations for the full year remain unchanged, with confidence in further profit growth in H2 2025.

Financial highlights

• Group revenue increased 5% year-over-year to £89.7m, with underlying operating profit up 3% to £14.8m.

• Operating profit was £11.0m, down 15% due to £1.8m exceptional costs.

• Cash conversion over the last 12 months was 95%, at the upper end of the 75%-100% target range.

• Net cash at 30 June 2025 was £22.0m, with a £60m undrawn facility ensuring strong liquidity.

• Interim dividend maintained at 4.0p per share, with £9m distributed to shareholders via dividends and buybacks.

Outlook and guidance

• Full-year outlook remains unchanged, with expectations for a sequential profit step-up in each division in H2.

• Strong refinancing activity and increased residential sales pipelines support positive H2 expectations.

• Continued investment in technology, data, CRM, and lettings books planned for the second half.

• Market conditions are improving, supporting a positive outlook.