LSL Property Services has managed to grow its operating profit by more than £4m, despite the pandemic wiping more than 10 times that figure from its annual turnover.
The Newcastle company, which runs a number of estate agent and financial service brands, saw its revenue drop from £311.1m to £266.7m for the year ending December 31, 2020 - a decrease of more than £44.3m.
But at the same time, the group managed to grow its operating profit by £4.2m over the 12 month period to £23.9m.
The coronavirus pandemic impacted LSL's business significantly with lockdown forcing the business to close all of its estate agency branches while the first lockdown also restricted physical property valuations.
In response, LSL placed around 3,300 employees on furlough. By the end of July 2020, 85% of furloughed staff had returned to work.
Speaking in the company's accounts, chief executive David Stewart said LSL had acted quickly to the pandemic, claiming it was one of the first companies to take action.
He said: "In terms of our business, we recognised immediately that cash conservation would be essential to maintaining the future strength of LSL and a series of further measures were introduced to this end, including the scrapping of salary rises otherwise due to take effect in April, and the deferral of all other non-essential cash expenditure. The board also recognised that it would be inappropriate to declare any dividends for 2020.
"The success of these steps, combined with the group's historically prudent approach to debt as well as the assistance afforded by the Coronavirus Job Retention Scheme, meant that on 5 June 2020, we were able to confirm that after undertaking stress testing which assumed significant stress throughout 2020, the group would retain sufficient liquidity throughout the year."
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In total, LSL received £15.7m from the Coronavirus Job Retention Scheme, which it used to pay furloughed staff. It also received property grants of £2.6m and business rates relief of £2.4m.
However, the group also suffered £6.4m of Covid-related costs during 2020. These included a £2.6m cost relating to holiday accruals built up during lockdown and staff redundancy costs.
The costs also included a £3m relating to property and other assets incurred during lockdown (which are net of the property grants the group received) and £800,000 in PPE costs.
Mr Stewart said: "Our financial performance during 2020 highlighted the resilience and strength of our group. The work we have been able to complete on our strategy emphasises our exciting future, in which financial services will be our chief engine of growth and enhanced profitability.
"Our PRIMIS network is one of the leading service providers to mortgage intermediaries, whilst our heritage provides us with deep expertise in the provision of mortgage and protection advice to estate agency customers.
"The group has invested significantly in its digital capability, which was enhanced further by the recent acquisitions of Mortgage Gym and Direct Life and Pension Services, and we now have industry-leading technology available. These factors combined to make LSL a compelling partner for Pollen Street Capital and The Property Franchise Group plc, in two recently announced strategic initiatives that we expect to deliver significant value for our shareholders."
Since the year end, LSL has continued to invest in its business, particularly in its financial services division.
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The company acquired the Mortgage Gym at the start of 2021 and has used its technology to help launch a new mortgage broker business called Pivotal Growth. The joint venture was formed in partnership with Pollen Street Capital.
LSL also announced earlier this week that it would be providing mortgage advice to customers of The Property Franchise Group, which operates more than 430 offices around the 海角视频.
Mr Stewart continued: "I would add that we have been equally encouraged by the excellent performance of our estate agency and surveying businesses.
"In estate agency we are exceptionally well placed to benefit from the current strong market, having increased our market share since the end of the lockdown. Our surveying business is similarly performing extremely well, with opportunities to broaden its product set to lenders and customers.
"This progress could not have been made without the hard work and commitment of colleagues working across the group and I would like to thank them for their exceptional effort and support.
"With current market conditions supporting growth in all of our businesses, I believe LSL is exceptionally well-positioned to continue to grow both organically and via acquisition and we look forward to the future with confidence."