LSL Property Services (LSL) has announced the appointment of Adam Castleton as Chief Executive Designate, marking a significant leadership transition as the company positions itself for its next phase of growth.
Castleton, currently Group CFO, will take over from David Stewart, who is retiring from his executive role but will remain with the company in a non-executive capacity.
Castleton’s appointment follows a rigorous selection process overseen by the Nominations Committee and facilitated by an external executive search firm.
Having served as CFO since 2015, Castleton is well-versed in LSL’s operations and financial strategy. His extensive leadership experience, gained at O2 UK, eBay, and The Walt Disney Company, coupled with his strong financial acumen, makes him a natural choice to drive LSL’s continued transformation.
CRUCIAL ROLE
David Stewart, who has played a crucial role in reshaping LSL into a higher-margin, less capital-intensive business, will remain with the Group as a non-executive director within its Financial Services Network. LSL says his presence will ensure continuity in a key segment of its operations.
Meanwhile, LSL has strengthened its governance structure by appointing Michael Stoop as chair of the Estate Agency Division and Darrell Evans as chair of the Surveying and Valuation Division, reflecting their respective expertise in these fields.
Adrian Collins, Non-Executive Chair, says: “The Board is very confident in Adam as the right person to lead LSL forward, due to his detailed knowledge of our business, his breadth and depth of experience in corporate leadership, and his close engagement with our investor community.”
LSL’s leadership transition coincides with a robust trading update for 2024 – released yesterday – which saw Group revenues rise by 20% to £173m (2023: £144.4m). Underlying operating profit exceeded expectations across all three divisions, reinforcing the company’s financial stability.
STRONG PERFORMANCE
Operating margins improved across the board, with the Group’s overall margin increasing to 16% (historical norm: 12%). Financial Services expanded its market share to 11.6% (2023: 10.7%), while Surveying & Valuation rebounded strongly, with operating margins surging to 23% (2023: 9%). The fully franchised Estate Agency Division recorded a record-breaking margin of 28% (2023: 21%).
LSL also maintains a strong balance sheet, with net cash standing at £32.4m as of 31 December 2024, positioning the company well for further investment and strategic initiatives.
HEADWINDS
LSL told The City: “Looking ahead, we remain confident about the Group’s prospects. Whilst current economic sentiment, higher interest rates, and the increase in employer NI costs constitute headwinds, we entered the year with stronger pipelines than in 2024 and January trading is in line with expectations.
“We will continue to invest further in each of our businesses to take advantage of the growth opportunities identified, and at this early stage of the year we expect to deliver an increase in profit for 2025 compared to 2024 in line with expectations, as our markets continue to normalise. A further update on current trading and outlook will be shared with the release of our preliminary results.”
