LSL Property Services reported higher revenue, profit and margins for the first half of 2026 as the UK property and mortgage services group progresses a broader transformation program.
Group revenue increased 3% to £92.3 million, while underlying operating profit rose 11% to £15.9 million. Underlying operating margin expanded 130 basis points to 17.3%, and adjusted diluted EPS increased 14% to 11.7p.
The company also reported 91% cash conversion over the latest 12-month period and a 36% return on capital employed. LSL said the majority of its income is not directly dependent on property transactions, with recurring or resilient revenue sources including lettings, remortgages and platform fees.
In Surveying & Valuation, revenue increased to £56.2 million from £53.2 million, while underlying operating profit reached £13.1 million. LSL achieved a 100% contract renewal rate and secured additional allocations from two major lenders.
Estate Agency Franchising generated £13.2 million of revenue, while underlying operating profit increased 24% to £3.9 million. The divisional margin expanded to 30% from 24%. LSL also added 13 branches and seven lettings books as it continued expanding its network.
Financial Services benefited from an improving mortgage market. Mortgage revenue increased 8%, LSL maintained an 8.9% share of total mortgage lending and revenue per adviser increased 12%. The company also completed a small regional acquisition after the period that added approximately 50 advisers.
LSL is also pursuing a company-wide transformation designed to create a simpler and more connected organization. The program focuses on reducing duplicated work, creating more process-driven operations and increasing the use of technology and data. Management expects the changes to generate approximately £5 million of benefits through fiscal 2027.
For fiscal 2026, LSL continues to expect higher revenue and profit, cash conversion of 75% to 100% and capital expenditures between £3 million and £5 million. Management said results remain on track with consensus expectations.
