REG - LSL Property Svcs. - Pre-Close Trading Update

LSL Property ServicesAnnouncement

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RNS Number : 4434Q  LSL Property Services PLC  27 January 2026

27 January 2026

LSL Property Services plc ("LSL" or "Group")

Pre-Close Trading Update

In line results, further strategic progress and new £12m share buyback
programme

LSL is pleased to announce its pre-close trading update for the 12-month
period ended 31 December 2025(1), ( )an update on strategic progress and a
new £12m share buyback programme.

Trading highlights

The full year results for 2025 are in line with the Board's expectations with
a strong performance in the second half of the financial year. All three
divisions delivered improved Underlying Operating Profit. Central costs were
reduced year-on-year.

·    Group Revenue up c.6% to c.£183m (2024: £173.2m)

·    Group Underlying Operating Profit is expected to increase by over 15%
on the prior year, with second half profit up by c.30%

·    Group Underlying Operating Margin increased to a record high of c.18%
(2024: 16%)

·    Net cash was £27.8m at 31 December 2025 (30 June 2025: £22.0m).
Cash conversion normalised in the second half as expected, with full-year cash
conversion of over 85%

Against a mixed market backdrop, the Group continues to make positive
progress, benefiting from its capital-light, structurally higher-margin
business model and a sustained focus on operational improvement, cost
discipline and disciplined growth opportunities.

Strategic progress

The Group has continued to deliver strategic progress across its businesses,
including:

·    The Surveying & Valuation ("S&V") Division signed its first
Automated Valuation Model ("AVM") contract with one of the UK's largest
banking groups, reflecting S&V's product suite expansion and commitment to
technological innovation. e.surv is the residential property valuation market
leader in the UK  through its comprehensive property risk expertise and is
the only provider that offers AVM, remote and physical property valuations

·    Financial Services Division market share increased, with our overall
share of the UK purchase and remortgage market increasing to 11.8% (2024:
11.6%(2))

·    In January 2026, the Group completed the small bolt-on acquisition of
National Search Service ("NSS"), a leading property search company, using
existing cash resources. This acquisition enhances LSL's existing conveyancing
service proposition in the Estate Agency Franchise ("EAF")  Division.  The
acquisition is expected to be earnings accretive in year one

·    During Q4, EAF supported the tenth lettings book acquisition in 2025
by franchise partners (2024: three), an acceleration of this high ROCE
strategic priority for the division

Share buyback: New £12m programme launched

The Group has a balanced capital allocation programme, which prioritises
organic growth investments and strategic bolt-on acquisitions, alongside
returning excess cash to shareholders. The £7m share buyback programme
launched in April 2024 has now completed, with 2,610,470 shares purchased at
an average purchase price of 268 pence per share. Given the financial strength
of the Group, its capital-light operating model and ongoing strong cash
generation capability, the Board is announcing separately today the launch of
a new £12m share buyback programme.

Pivotal Growth JV: Further acquisitions and third party debt secured

Pivotal Growth JV delivered further progress year-on-year, continuing to scale
profitably, with 21 acquisitions to date, and in December 2025, agreed a new
senior debt facility with a leading European provider of capital to small and
mid-sized companies. The facility allowed repayment of existing shareholder
loan notes and provides third party funding intended to support the group's
ongoing expansion without the need for additional shareholder funding.

Current trading and outlook

2026 has seen a positive start to trading, with the refinancing tailwind seen
in the second half of 2025 continuing into the new year, supporting both our
Financial Services and S&V divisions. There has been evidence that
residential property transactions in Prime and Outer Prime London are subdued
but LSL's EAF Division has limited exposure to these markets and continues to
see an improving transaction pipeline.

Overall, the Board expects another year of profit growth in 2026 and ongoing
strong cash conversion.  A further update will be provided at the time of the
Group's audited full year results which are expected to be released in March
2026.

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."

 

Notes

(1.                  ) Based on preliminary unaudited
financial information.

2.        Year-to-date November 2025 vs. year-to-date November 2024.
Source: Lending secured on dwellings, Bank of England - Table A5.3 (5 January
2026)

( )

For further information, please contact:

 

 Adam Castleton, Group Chief Executive Officer
 David Tilak, Group Chief Financial Officer
 Phil Clark, Investor Relations
 LSL Property Services plc                      investorrelations@lslps.co.uk (mailto:investorrelations@lslps.co.uk)

 Helen Tarbet
 Sophie Wills
 Toto Berger
 Burson Buchanan                                LSL@buchanan.uk.com (mailto:LSL@buchanan.uk.com)

 

Notes on LSL

LSL is one of the largest providers of services to mortgage intermediaries and
estate agent franchisees.

Over 2,700 advisers representing over 11% of the total purchase and remortgage
market.

Its 62 estate agency franchisees operate in 310 territories.

LSL is also one of the UK's largest providers of surveying and valuation
services, supplying six out of the seven largest lenders in the UK.

For further information please visit LSL's website: lslps.co.uk
(http://www.lslps.co.uk/) .

 

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