LSL Property Services, the parent company of Reeds Rains and Your Move, has reported a rise in first-half profits and pledged to accelerate investment in technology and expansion under new chief executive Adam Castleton.
For the six months to June 30, the group posted an underlying operating profit of £14.8 million, up 3 % on the same period last year.
Revenue rose 5% to £89.7 million, while its operating margin held steady at 17% – the highest level in 15 years.
On a statutory basis, operating profit fell to £11 million from £13 million, reflecting £1.8 million of exceptional costs. Basic earnings per share declined 19% to 8.1p, though adjusted earnings held flat at 11p. An interim dividend of 4p per share was maintained. Net cash at the half-year stood at £22 million, down from £32.5 million a year earlier, following investment and share buybacks.
WELL POSITIONED
Castleton (main picture), who took the helm in May, said the group was “well positioned” to grow across its three divisions – surveying and valuation, financial services and estate agency franchising – which he described as “mission-critical” to the UK’s £800 billion residential property and lending market.
In a statement to the City yesterday morning he said: “We made positive progress in the first half of 2025, delivering revenue and profit growth, while maintaining operating margin at its highest level for 15 years. We delivered structurally higher ROCE of over 30%, well above historical levels.
“LSL is a well positioned business, as our three divisions add value at all key points in the UK’s property and mortgage lending ecosystem.
“We have a capital light B2B platform for UK residential property market services. My focus is on empowering our teams, capturing further operational improvements in each division, and seizing the opportunity to leverage more of the Group’s collective strengths. Combined, these should deliver enhanced margins and greater returns for shareholders.”
DIGITAL OVERHAUL
During the period, LSL invested in digital systems, including rolling out a new CRM platform for its financial services arm and advancing automated valuation models (AVMs) with major lenders.
Its estate agency franchise network expanded with three new branches and lettings acquisitions, while its surveying arm grew business-to-consumer revenue by 43%.
The group’s joint venture, Pivotal Growth, has now completed 19 acquisitions as it consolidates the mortgage broker market.
Looking ahead, LSL said mortgage pipelines remain above historic levels, with refinancing volumes expected to strengthen in the second half following a subdued first half. July was its strongest refinancing month of the year so far.
The board reaffirmed its guidance for the full year, forecasting higher underlying profits in line with market expectations.
