LSL Property Services (LSL) Investor Update summary

Financial performance and operational highlights

• Revenue increased by 5% to £89.7 million, with operating profit up 3% to £14.8 million and margins at a 15-year high of 17%.

• Return on capital employed reached 31%, significantly above historical levels, and cash conversion for the last 12 months was 95%.

• Surveying and valuation division saw 9% revenue growth, B2C revenue up 43%, and surveyor productivity up 8%.

• Financial services new mortgage lending rose 23%, with advisor productivity up 8% and CRM implementation progressing.

• Estate agency franchising expanded with three new branches and lettings portfolio growth through acquisitions.

Strategic investments and capital allocation

• £9 million was distributed to shareholders via dividends and buybacks, with the interim dividend maintained at 4.0p.

• £3.6 million invested in CRM development, data, and lettings book acquisitions to support future growth.

• Cash position at £22 million with a £60 million unutilized facility, ensuring strong liquidity and flexibility.

• Cash conversion temporarily suppressed due to working capital timing, expected to normalize to 75–100% by year-end.

Market context and divisional performance

• Mortgage market new lending up 22%, with company new mortgage lending up 23% and market share gains.

• UK residential sales increased 17%, with mortgage approvals up 10% and surveying revenue up 9%.

• Financial services revenue mix shifted, with mortgage-related revenue up 21% and protection revenue down 12%.

• Estate agency sales income per branch rose 22%, and lettings portfolio exceeded 37,400 properties.