Newcastle-based property services group LSL has reported substantial growth in both revenue and underlying operating profit for the full year 2025, despite operating within what company executives describe as a "mixed market backdrop." The Tyneside firm, which operates across mortgage intermediation, estate agency franchising, and valuation services for lenders, delivered a pre-close trading update to investors on the London Stock Exchange, revealing encouraging financial progress.
Strong Financial Performance in Challenging Conditions
According to the trading statement, group revenue is anticipated to have increased by approximately 6% to reach £183 million for the year 2025. More significantly, the group's underlying operating profit is expected to show robust growth of around 15%, with the underlying operating margin climbing to a record high of about 18%. This represents a notable improvement from the 16% margin achieved in the previous year, 2024.
Company leadership acknowledged variable conditions across the property sector but reported that 2026 has begun positively, with momentum from a stronger second half of 2025 continuing into the new calendar year. While residential property transactions in London have remained subdued, LSL highlighted its limited exposure to that specific market segment, helping to insulate its overall performance.
Strategic Developments and Division Highlights
The group, which has undergone significant restructuring of its estate agency operations in recent years, pointed to several key strategic advancements. Within its Surveying & Valuation Division, LSL secured its first contract for an automated valuation model (AVM) with a major UK banking client, marking a technological milestone.
Furthermore, the financial services division increased its market share, with its overall portion of the UK purchase and remortgage market growing to 11.8%. During the final quarter of 2025, LSL facilitated the tenth letting book acquisition by one of its franchise partners, and earlier this month, the group completed the acquisition of property search company National Search Service.
This acquisition was characterised as a small bolt-on deal designed to enhance the group's existing conveyancing services offering.
Shareholder Returns and Executive Commentary
Accompanying the trading update, LSL announced a new £12 million share buyback programme. This follows the completion of a £7 million buyback scheme that was initiated in April of the previous year. Management emphasised the group's "capital light" business model as a foundation for these shareholder returns.
Adam Castleton, Group Chief Executive Officer of LSL, commented on the results: "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."
He added, "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."
Castleton concluded, "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." Full audited results for the year are scheduled for publication in March.
