30th Jan 2025 11:35
(Alliance News) - LSL Property Services PLC on Thursday said it expects to report a significant increase in profit and revenue for 2024, reflecting a "resilient" second half and strong trading across its divisions.
Shares in LSL Property Services were up 13% to 308.00 pence each in London on Thursday morning.
The Newcastle Upon Tyne, England-based provider of services to mortgage intermediaries and franchised estate agencies anticipates full-year revenue of GBP173 million, a 20% increase from GBP144.4 million in 2023.
Underlying operating profit is set to be "significantly ahead" of the prior year and slightly above the board's previous expectations.
The group's operating margin widened to 16%, from a historical norm of 12%, driven by cost efficiencies and improved profitability in its three main divisions.
The Financial Services Network division saw profit growth, with LSL increasing its share of the UK purchase and remortgage market to 12%, up from 11%.
Meanwhile, the Surveying & Valuation unit benefited from market normalisation, boosting its operating margin to 23% from 9% in 2023.
The Estate Agency Franchising business completed its first full year with an entirely franchised model, achieving "record" profits and an operating margin of 28%, up from 21%.
Despite challenges such as high interest rates and increased employer National Insurance costs, LSL remains optimistic about 2025, expecting further profit growth as market conditions continue to normalize.
LSL also announced that Chief Financial Officer Adam Castleton will succeed David Stewart as Chief Executive Officer on May 1.
LSL said Castleton, who has served as CFO since 2015, was selected following an extensive search process. The company will now begin the search for a new CFO.
Chair Adrian Collins said: "We are immensely grateful to David, who during his tenure as CEO led the transformation of LSL to a higher margin, less capital-intensive business that will perform more consistently through market cycles. Under his leadership, we have simplified and restructured our Financial Services and Estate Agency businesses. Both are now focused on business-to-business services with a significantly lower cost base and the potential for higher free cash flow generation.
"The board is very confident in Adam as the right person to lead LSL forwards, due to his detailed knowledge of our business, his breadth and depth of experience in corporate leadership and his close engagement with our investor community."
By Eva Castanedo, Alliance News reporter
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