Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
LSL's financial services division, which includes Primis and TMA Club, reported a 3% year-on-year fall in revenue to £22.9m over the first half of the year. Underlying profit in the division declined 20% to £3.4m.
According to LSL, the decline reflected investment in its new CRM system and a fall in adviser numbers, including the departure of protection-only firms last year.
Regional Acquisition and Market Share Growth
Despite the revenue dip, LSL made a "small regional acquisition" at the end of the period, which will add 50 advisers to the Primis network. The group reported stable or higher market shares across its principal mortgage channels, alongside a 12% increase in revenue per adviser.
At the end of H1, the division held a 12.7% share of the purchase market, up slightly from 12.6%, while its remortgage market share grew from 8.7% to 8.9%. Its product transfer share widened from 5.8% to 6.7%.
Remortgage Demand Supports Revenue
The division's 8% growth in mortgage revenue was driven primarily by remortgage activity. LSL cited "high levels of demand" in the remortgage market during the first half, and this business now represents around a third of the group's total revenue. The group said this presented a "significant and sustained opportunity" across its financial services and surveying and valuation businesses.
The division reported an operating profit of £3.9m at the end of the period, up 74% on the previous year. LSL said it had refreshed its management, restructured its governance, and would focus on adviser productivity, product penetration and firm recruitment.
Wider Group Performance
LSL's surveying and valuation division delivered a 6% revenue uplift to £56.2m, with underlying operating profit rising 11% to £13.1m. The estate agency division reported a "very strong performance", with underlying operating profit up 24% to £3.9m, a record margin of 30% and revenue up 2% to £13.2m.
For letting agents, LSL said lettings had remained "resilient" following the first phase of the Renters' Rights Act, with underlying landlord activity staying stable. The group saw "no evidence" of the material withdrawal of landlords that some industry commentators had predicted.
Across the group, underlying operating profit rose from £14.4m to £15.9m, with a 15-year high margin of 17%. Operating profit increased from £10.9m to £12.5m, and group revenue rose 3% to £92.3m.
Adam Castleton, group chief executive, said LSL had delivered "further profit and margin growth and strong cash generation" and launched a group-wide transformation programme expected to improve structural cost-effectiveness and support further margin improvement.
Source: Mortgage Solutions