LSL Property Services reported a rise in first-half profit despite a dip in residential sales, largely thanks to its estate-agency franchising arm.
Group revenue reached £92.3 million for the six months to 30 June 2026, a 3 percent increase from the same period a year earlier.
Underlying operating profit grew 11 percent to £15.9 million, while statutory operating profit climbed 14 percent to £12.5 million.
The underlying operating margin improved from 16 percent to 17 percent.
Residential sales transactions fell 4 percent compared with the first half of 2025, a period that had benefited from a surge ahead of Stamp Duty reforms.
London activity was softer, but LSL noted its exposure to the capital market remains limited.
Franchise division posts record margin
The Estate Agency Franchising division posted an underlying operating profit of £3.9 million, up 24 percent, with revenue edging 2 percent higher to £13.2 million.
Its underlying operating margin hit a record 30 percent for the first half, aided by restructuring completed the previous year.
LSL added 13 new franchise branches after acquiring a small South Coast network and expanding existing partner locations.
Seven lettings books were transferred to franchisees, raising the total properties under management by 4 percent to 38,660 units.
Transformation plan and future targets
LSL announced a group-wide transformation programme aimed at simplifying operations and removing duplication, targeting at least £5 million of annualised benefits by 2027.
The company plans to invest £4 million in the programme across 2026 and 2027.
Management reiterated a goal of achieving an underlying operating margin above 20 percent.
Adam Castleton said the first-half performance delivered profit and margin growth alongside strong cash generation.
He added that the transformation will improve structural cost-effectiveness, leverage scale and support further margin improvement.
The Surveying & Valuation division saw revenue rise 6 percent to £56.2 million, with operating profit climbing to £13.1 million and margin climbing to 23 percent.
Mortgage revenue increased 8 percent, maintaining an 8.9 percent share of total mortgage lending.
Financial Services revenue fell to £22.8 million from £23.5 million, and underlying operating profit dropped to £3.4 million, reflecting exits from protection-only firms and ongoing CRM investment.
After the reporting period, LSL completed a regional acquisition expected to add roughly 50 advisers to its PRIMIS network.
Trading since June has proceeded as anticipated, and the board remains confident of meeting full-year 2026 expectations, forecasting another profit increase.
Cash on hand stood at £22 million at the end of June, the interim dividend stayed at 4p per share and a £12 million share-buyback programme is on track for completion by January 2027.
