30 January 2025
LSL Property Services plc ("LSL" or
"Group")
Full Year Trading
Update
2024 results ahead of expectations and
materially above prior year
LSL issues a pre-close trading
update for the 12-month period ending 31 December
20241.
Highlights
Trading during the second half of
the year was resilient and much stronger than 2023.
Group revenues for the 12 months
ended 31 December 2024 are expected to increase by c.20% to c.£173m
(2023: £144.4m). Group Underlying Operating Profit2 is
significantly ahead of prior year and slightly ahead of the Board's
prior expectations, with each of our three divisions reporting an
increase in Underlying Operating Profit.
Operating Margin2
improved in each Division, with Group Operating Margin of c.16%
compared to LSL's historical norm of 12%, reflecting the benefits
of the reorganised Group structure. The Group cash flow conversion
rate improved to over 100% (2023: -2%).
Profit increased year on year in our
Financial Services Network business and our overall share of the UK
purchase and remortgage market3 increased to 11.6%
(2023: 10.7%). Operating margin for the year improved to c.18%
(2023: 14%).
Surveying & Valuation
performance increased materially from prior year, benefiting from
normalising market conditions and contract extensions. Operating
margin for the year improved to c.23% (2023: 9%).
In the Estate Agency Franchising
Division, we completed our first full year with an entirely
franchised branch network, delivering a material increase in
profits with operating margin at a record high of 28% (2023:
21%).
The Group retains a strong balance
sheet, with Net Cash of £32.4m at 31 December 2024 (31 December
2023: £35.0m).
Current trading and
outlook
Looking ahead, we remain confident
about the Group's prospects. Whilst current economic sentiment,
higher interest rates, and the increase in employer NI costs
constitute headwinds, we entered the year with stronger pipelines
than in 2024 and January trading is in line with
expectations. We will continue to invest further in each of
our businesses to take advantage of the growth opportunities
identified, and at this early stage of the year we expect
to deliver an increase in profit for 2025 compared
to 2024 in line with expectations, as our markets continue to
normalise. A further update on current
trading and outlook will be shared with the release of our
preliminary results.
Notes to trading update:
1.
This trading update is based on preliminary unaudited financial
information
2.
Group Underlying Operating Profit/Operating Margin before
exceptional costs, contingent consideration assets &
liabilities, amortisation of intangible assets and share-based
payments
3.
Mortgage lending excluding product transfers. New mortgage lending
by purpose of loan, UK (BOE) - Table MM23 released January
2025
For further
information, please contact:
Notes on LSL
LSL is one of the largest providers
of services to mortgage intermediaries and estate agent
franchisees.
Over 2,700 advisers representing
over 11% of the total purchase and remortgage market.
Its 62 estate agency franchisees
operate in 310 territories.
LSL is also one of
the UK's largest providers of surveying and valuation
services, supplying seven out of the ten largest lenders in
the UK.
For further information please visit
LSL's website: lslps.co.uk
LEI:
213800T4VM5VR3C7S706
