Revenue and profits have edged up for property services group LSL amid a reported recovery in the market.
The London-listed group, which is based in Newcastle but has operations throughout the 海角视频, said it expects to deliver further growth in underlying profits this year. And bosses say tightened regulations in the sector will drive work its way.
In half year results published to investors, LSL said group revenue was up 5% to £89.7m and group underlying operating profit has risen 3% to £14.8m, with the increase coming despite investments in the business and absorption of the Employers' National Insurance contributions increase. The group's operating margin remained at 17%.
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New CEO Adam Castleton, who took the role in January, said he was confident of further growth - prompted by greater regulation of the sector - from LSL's three key divisions: financial services, surveying and valuation, and estate agency franchising. Mr Castleton is at the helm of a slimmed-down group following LSL's decision to transfer its network of more than 180 estate agent branches to franchisees - a move which is said to have made the group more agile and helped smoothed out cyclical trading in the housing market.
The group is now looking to grow its franchise base with loans granted in the six months to the end of June for three lettings book acquisitions - adding more than 600 properties to its lettings portfolio and three branch openings. Meanwhile, LSL's Financial Services division had delivered a 23% rise in operating profit to £4.8m while its Surveying and Valuation business saw operating profit fall 8% to 11.9%.
Residential sales were 17% ahead of last year and are expected to be slighter higher in the second half of the year, along with lettings expected to be buoyant thanks to university students' return.
Mr Castleton 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 return on capital employed of more than 30%, well above historical levels.
"LSL is a well positioned business, as our three divisions add value at all key points in the 海角视频's property and mortgage lending ecosystem. We have a capital light B2B platform for 海角视频 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.
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"It is early days in my tenure as CEO, and I am excited about the growth opportunities open to us as a group. With 2025 on track, we are looking ahead with renewed ambition and confidence about our future."
LSL's results came at the same time major housebuilder Barratt Redrow warned that fears over tax hikes were curtailing the market. Speaking to BusinessLive, Mr Castleton said his group had seen little change in customer behaviour so far with the refinancing market expected to be up between 30-40% in the second half.
He added: "Given our strength across residential and financial services, we remain cognisant of the continued regulatory focus the sector receives and the necessity to appropriately respond to developments. We believe that this increased regulatory focus will consolidate demand towards the larger operators, such as ourselves, and indeed that there is scope for us to benefit from a tightened regulatory environment as our scale and expertise enables us to offer best-in-class advice and support to our customers."