LSL Property Services reported a 3% increase in group revenue for the first half of fiscal 2026, a level the company described as representing just under half of its full-year revenue target. Underlying operating profit for the period rose 11% to £15.9 million.
Key balance sheet and cash metrics were highlighted alongside operating results. The group recorded a return on capital employed of 36% and a cash conversion rate of 91%. Net cash stood at £22 million after the company completed £4.8 million of a planned £12 million share buyback programme.
Segment performance
Within the group, the Surveying & Valuation division delivered revenue of £56.2 million, up 6% from £53.2 million in the first half of 2025. Underlying operating profit in this segment increased by 11%, with the operating margin expanding by 100 basis points to 23.3%.
Financial Services showed mixed outcomes. Mortgage revenue in the segment rose 8%, with the business maintaining market share and achieving higher revenue per adviser. However, total Financial Services segment revenue declined 3% to £22.8 million. Underlying operating profit for the segment fell by £0.9 million to £3.4 million. Management attributed the decline in part to the prior year’s strategic exit from several protection-only firms and to continued investment in a new customer relationship management system. After the reporting period, the group completed a small regional acquisition expected to add approximately 50 advisers to the PRIMIS network.
Estate Agency Franchising posted 2% revenue growth and a 24% increase in underlying operating profit, reaching an operating margin of 30%. The franchise branch network expanded by 13 locations during the period through a combination of the acquisition of a small franchise network and organic growth among existing partners.
Transformation programme and costs
The company has launched a Transformation programme intended to simplify the operating structure and deliver at least £5 million of annualised benefits. Implementation of the programme will continue through 2027. Exceptional costs associated with the programme are estimated at £4 million and will be incurred across 2026 and 2027. The board has said the programme supports the group's objective to drive underlying operating margin above 20%.
Outlook and market expectations
Management reported that trading since the period end has been in line with expectations and that the board’s outlook for fiscal 2026 remains on track. Consensus estimates cited by the company place underlying operating profit for the full year at between £33 million and £34 million, excluding the Pivotal joint venture.
In summary, the first half results show modest revenue growth across the group, an 11% uplift in underlying operating profit, and continued investment in systems and growth of adviser numbers within Financial Services. The group also remains focused on margin improvement through its Transformation programme while progressing a share buyback.