LSL Property: Profit shoots up as housing market recovers
LSL Property Services, one of the UK’s largest providers of mortgage and valuation services, has reported a jump in profit amid increased activity in the housing market.
LSL reported operating profit of £21.9m for the year ended December 31, up more than five-fold from £3.7m in 2023.
Underlying operating profit for the full year was £27.7m, up from £10.3m in 2023.
Overall revenue rose 20 per cent, from £144.4m in 2023 to 173.2m in 2024.
The results beat broker estimates by six per cent.
LSL has benefitted from an overall recovery of the housing market, as well as an internal group restructuring.
The company, which owns Your Move and Reeds Rains estate agencies, was forced to warn on its profit last year after “significant changes in the mortgage market”.
However, the group hiked its expectations in April after it said that mortgage applications over the first two months of the year were “significantly ahead” of forecasts due to expectations of a rate cut.
As interest rates started to fall last year, mortgages became cheaper and housebuying picked up, boosting the company.
The group also streamlined operations during the period, resulting in a “much simpler” company.
“2024 was a year of positive progress, as we built successfully on the restructuring work completed in 2023,” chief executive David Stewart said.
“We were able to grow profits materially, and at a faster rate than we had anticipated at the start of the year.
“Trading in the early months of the new year is in line with expectations, indicating we will be able to improve performance again in 2025.”
In addition to the trading update, the company announced that Adam Castleton will take over as CEO from Stewart on May 1.
Castleton has been the chief financial officer at LSL since joining the company in 2015.