LSL Property Services has told the City it finished 2025 in line with expectations, delivering higher operating profits, record margins and strong cash generation, alongside further strategic progress across the group and a new £12m share buyback programme.

In a pre-close trading update, the firm says Group Revenue rose by around 6% to approximately £183m, while Group Underlying Operating Profit is expected to increase by more than 15% year-on-year. The group said profit growth accelerated in the second half of the year, with second-half operating profit up by around 30%.

All three divisions delivered improved Underlying Operating Profit, while central costs were reduced year-on-year. LSL said this drove a “record high” Group Underlying Operating Margin of around 18%, reflecting the benefits of its “capital-light, structurally higher-margin business model” and sustained focus on “operational improvement and cost discipline”.

Positive progress on a mixed market backdrop.”

Against what it described as a “mixed market backdrop”, LSL said it continued to make “positive progress”, combining financial discipline with targeted growth initiatives.

Strategic developments

Strategic developments included the signing of the group’s first Automated Valuation Model contract within its Surveying & Valuation division, with one of the UK’s largest banking groups, reflecting “product suite expansion and commitment to technological innovation”.

In Financial Services, LSL said market share increased, with its share of the UK purchase and remortgage market rising to 11.8%.

Within the Estate Agency Franchise division, LSL completed a small bolt-on acquisition in January to enhance its conveyancing proposition, while franchise partners supported ten lettings book acquisitions during 2025, described by the group as an acceleration of a “high ROCE strategic priority”.

Underlying Operating Profit was up in all three divisions and our central costs reduced – we achieved a record high Group Operating margin.”

On capital returns, LSL confirmed the completion of its £7m share buyback programme and announced a new £12m programme, citing its “strong cash generation capability” and “financial strength”.

Chief executive Adam Castleton, who was appointed one year ago, said: “Underlying Operating Profit was up in all three divisions and our central costs reduced – we achieved a record high Group Operating margin.”

Looking ahead, the Board said trading in 2026 has started positively and expects another year of profit growth and strong cash conversion.

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