LSL Property Services has reported underlying operating profit of £32.6 million for the year ending 31 December 2025, representing a 17% increase from £27.8 million in the previous year. The company’s underlying operating margin reached 18%, compared to 16% in 2024.
Group revenue rose 6% to £182.9 million from £173.3 million, with the company maintaining market share across its three divisions. Operating profit increased 3% to £22.6 million after accounting for exceptional costs of £5.1 million.
Financial performance
The company generated adjusted operating cash flow of £29.8 million with 91% cash conversion. Return on capital employed increased to 35% from 32% the previous year. Net cash stood at £27.8 million at 31 December 2025, down from £32.4 million at the end of 2024.
LSL maintained its full-year dividend at 11.4 pence per share. The company completed a £7 million share buyback programme and launched an expanded £12 million programme in January 2026. Total shareholder returns through dividends and buybacks reached £16.8 million, up from £12.6 million in 2024.
Divisional developments
The Financial Services Division increased its share of the UK purchase and remortgage market to 12.0% from 11.8%. The Surveying & Valuation Division recorded business-to-consumer revenue growth of 16%. The company signed its first Automated Valuation Model contract with a major UK lender.
The Estate Agency Franchising Division completed ten lettings book acquisitions and opened six new branches. In January 2026, LSL acquired National Search Service, a property search company, which is expected to be earnings accretive in its first year.
Central costs decreased to £10.2 million from £11.1 million. Employee engagement levels rose to 77% from 73%.
Outlook
Adam Castleton, Group Chief Executive, stated: “Trading in 2026 has been in line with our expectations.” The company said it expects to deliver further profit growth in 2026, with trading across its businesses performing in line with expectations since the year end.
The Pivotal Growth joint venture has completed 24 acquisitions and secured external debt funding, repaying shareholder loans with no anticipated requirement for further shareholder investment.
