LSL Property Services (LSL) Trading Update summary

Trading performance and financial highlights

• 2024 revenues expected to rise by approximately 20% to £173m, with all divisions reporting higher underlying operating profit.

• Group operating margin improved to around 16%, up from a historical norm of 12%, reflecting benefits from the reorganised structure.

• Cash flow conversion rate exceeded 100%, a significant improvement from -2% in 2023.

• Net cash position at year-end was £32.4m, compared to £35.0m the previous year.

Divisional performance

• Financial Services Network profit increased, with UK purchase and remortgage market share rising to 11.6%.

• Surveying & Valuation saw material performance gains, aided by normalising market conditions and contract extensions; operating margin rose to 23%.

• Estate Agency Franchising completed its first full year as a fully franchised network, achieving record operating margin of 28%.

Outlook and strategic focus

• Entered 2025 with stronger pipelines and January trading in line with expectations.

• Plans to continue investing in all business areas to capture identified growth opportunities.

• Expects profit growth in 2025 as markets continue to normalise, despite economic headwinds such as higher interest rates and increased employer NI costs.