LSL Property Services has reported a significant rise in profits for 2024, with underlying operating profit surging to £27.7 million, up from £10.3 million in the previous year. On a statutory basis, operating profit rose to £21.9 million, compared with £3.7 million in 2023.
The results, which slightly exceeded market expectations, reflect the benefits of the group’s strategic transformation over the past two years.
LSL Chief Executive David Stewart described 2024 as “a year of positive progress,” highlighting the company’s ability to grow profits faster than initially projected.
He told the City: “Trading in the early months of 2025 is in line with expectations, and we anticipate further improvements in performance this year.”
He added that the business is now “well-positioned to build on solid foundations” and expressed confidence in his successor, Adam Castleton, who will take over as CEO on May 1.
STRATEGIC TRANSFORMATION
LSL’s restructuring, completed in 2023, has simplified the business and improved efficiency, enabling higher operating margins despite subdued market conditions.
The UK housing market remained below long-term averages last year, with new lending down 6% and housing transactions falling 9% over the decade’s norm. Economic uncertainty, persistent inflation, and delays to interest rate cuts also weighed on consumer confidence.
Despite these challenges, LSL achieved profitability growth across all divisions. The company invested £1 million in new products within its Surveying & Valuation division and launched a major upgrade of its Financial Services technology platform, set to begin in 2025.
The group’s estate agency franchising model continued to expand, facilitating three lettings book acquisitions in the second half of the year.
Meanwhile, its Pivotal Growth joint venture acquired eight businesses in 2024, with adviser numbers rising to over 500.
The purchase of the TenetLime mortgage network in February further strengthened LSL’s financial services arm, with integration progressing as planned.
LEADERSHIP CHANGES
As part of its leadership transition, LSL announced the appointment of Adam Castleton as CEO Designate, following David Stewart’s decision to retire. The company has also bolstered its senior management team with several key divisional appointments.
Board changes include the appointment of Adrian Collins as Chair and Michael Stoop as Non-Executive Director, further reinforcing governance at a time of sustained growth.
STRONG POSITION
Reflecting confidence in its future prospects, LSL maintained its full-year dividend at 11.4p per share, with a final dividend of 7.4p per share. The company’s strong balance sheet and improved earnings consistency suggest it is well-placed to navigate future market cycles while continuing to deliver shareholder returns.
