The Tyneside-based group said it had made a strong start to 2026
A ‘To let’ sign(Image: PA)
Property services firm LSL says revenue and underlying operating profit have grown in 2025, after a strong second half.
The Newcastle-based group, which includes mortgage intermediaries, estate agency franchisees, and valuation services for lenders, issued pre-close trading update to investors on the London Stock Exchange. It said group revenue is expected to be up about 6% to £183m while group underlying operating profit is expected to grow 15% with group underlying operating margin up to a record high of about 18%, compared with 16% in 2024.
Bosses described a “mixed market backdrop” but said 2026 had been so far positive with a tailwind from the second half of last year continuing into the new year. They had seen lower residential property transactions in London but highlighted limited exposure to that market.
Full audited results will come in March, but LSL – which has undergone a major shakeup of its estate agency offer in recent years – was keen to plug progress in a number of areas. In its Surveying & Valuation Division, a first ‘automated valuation model’ contract was signed with a major UK banking customer, and the group’s financial services division market share increased with overall share of the UK purchase and remortgage market increasing to 11.8%.
In the final quarter of 2025, LSL supported a tenth letting book acquisition of one of its franchise partners and earlier this month it acquired property search company National Search Service. That deal was described as a small bolt-on acquisition, boosting the group’s existing conveyancing offer.
Alongside the update, a new £12m share buyback scheme was announced following the completion of a £7m scheme launched in April last year. Bosses pointed to the group’s “capital light” model.
Adam Castleton, group chief executive officer, said: “LSL has delivered a strong performance over the period. Underlying operating profit was up in all three divisions and our central costs reduced – we achieved a record high group operating margin. The group saw an acceleration in our revenue and profit in the second half of the year and we have started 2026 in line with our expectations.
“We further strengthened our group growth drivers through the acceleration of our estate agency franchise partners acquiring lettings books; a bolt-on acquisition in our Estate Agency Franchise Division; and signing our first AVM deal by our Surveying & Valuation Division. As we start 2026, we are working at pace on further growth initiatives.
“With our strong financial performance and a highly resilient, cash generative business model we are returning cash to shareholders through our enlarged share buyback programme. I am excited about the opportunities ahead for the group, as we continue to drive forward success in our core businesses and increasingly working together for the benefit of the wider group.”
