LSL Property Services has reported an 11% increase in underlying operating profit to £15.9m for the first six months of 2026, despite a 4% decline in residential sales transactions. Group revenue also saw a 3% rise to £92.3m during the period.
The company's estate agency franchising division was a key driver of growth, with its underlying operating profit climbing 24% to £3.9m. This division's underlying operating margin reached a record first-half level of 30%, supported by restructuring efforts from the previous year. LSL also expanded its franchise network by 13 branches and increased properties under management by 4% to 38,660.
LSL has launched a group-wide transformation programme, expecting it to deliver at least £5m in annualised benefits as it is implemented through 2027. The company anticipates spending £4m on these changes across 2026 and 2027, with a target underlying operating margin of over 20%.
The Surveying & Valuation division also saw revenue increase by 6% to £56.2m, with underlying operating profit up 11% to £13.1m. However, total Financial Services revenue decreased from £23.5m to £22.8m, with underlying operating profit falling from £4.3m to £3.4m, attributed partly to an exit from protection-only firms and investment in a new CRM system.
LSL's board stated that trading since June has met expectations and remains on track to meet full-year 2026 expectations, anticipating another increase in profit. The company had net cash of £22m at the end of June and maintained its interim dividend at 4p per share.