17 September 2025

LSL Property Services plc ("LSL" or "Group")

HALF YEAR RESULTS TO 30 JUNE 2025

In-line results, continued operational progress and improved trading in H2 as expected

LSL reports its interim results for the six months ended 30 June 2025 with Group Underlying Operating Profit of £14.8m (H1 2024: £14.4m) and underlying operating margin maintained at 17%. Results are in line with the Board's expectations with progress across all three divisions, technology enhancements and expansion of the Group's footprint. The Board's expectations for the full year remain unchanged.

Adam Castleton, Group Chief Executive of LSL, commented:

"We made positive progress in the first half of 2025, delivering revenue and profit growth, while maintaining operating margin at its highest level for 15 years. We delivered structurally higher ROCE of over 30%, well above historical levels.

"LSL is a well positioned business, as our three divisions add value at all key points in the UK's property and mortgage lending ecosystem. We have a capital light B2B platform for UK residential property market services. My focus is on empowering our teams, capturing further operational improvements in each division, and seizing the opportunity to leverage more of the Group's collective strengths. Combined, these should deliver enhanced margins and greater returns for shareholders.

"It is early days in my tenure as CEO, and I am excited about the growth opportunities open to us as a Group. With 2025 on track, we are looking ahead with renewed ambition and confidence about our future."

STRATEGIC AND OPERATIONAL HIGHLIGHTS

The Group's performance demonstrates the strengths of the LSL platform and the benefits of a simpler Group structure. Our operating model remains capital light, cash generative and delivers a high return on capital employed compared with historical levels. Key highlights during the first half include:

·    Investing for growth in digital and systems:

o  Development and roll-out of a new CRM system in Financial Services, to drive productivity for LSL and its clients

o  Approaching commercialisation of automated valuation models ("AVM") with our lenders, a new revenue stream for Surveying & Valuation

·    Continuing to add scale:

o  Three new branch openings in Estate Agency Franchising and provided support for three lettings books acquisitions by franchisees

o  Renewed contract with a top three lender and added a new lender in Surveying & Valuation

o  B2C revenue growth of 43% on last year in Surveying & Valuation

·    Other operational highlights:

o  Pivotal Growth JV continues to gain scale with 19 acquisitions to date and a strong M&A pipeline

o  Central costs reduced to £5.0m (H1 2024: £5.5m)

o  Strong year-on-year trading performance of TenetLime acquisition

o  Winner of 2025 Moneyfacts Awards - PRIMIS, Mortgage Network of the Year and e.Surv, Best Surveying Service of the Year

FINANCIAL SUMMARY

·    Group Revenue of £89.7m (H1 2024: £85.4m). Revenue up 5% in a recovering market, maintaining our strong market share in all three divisions.

·    Group Underlying Operating Profit of £14.8m (H1 2024: £14.4m). Up 3%, including strategic investments in the business and absorbing NIC tax increase

·    Group Underlying Operating Margin at 17% (H1 2024: 17%). This remained in line with the 15-year high reported in the prior period

·    Group Operating Profit of £11.0m (H1 2024: £13.0m). Exceptional costs of £1.8m (H1 2024: net cost £0.1m)

·    Adjusted Operating Cash Flow of £7.4m (H1 2024: £11.7m). Reduction on H1 2024 a result of the timing of working capital movements around year end December 2024. Last 12 months cash conversion of 95%

·    Last 12 Months' ROCE of 31% (2024: 29%). Continued higher returns under the new operating model compared to historical levels (2016 - 2023: 18%)

·    Net Cash³ of £22.0m at 30 June 2025 (31 December 2024: £32.4m, 30 June 2024: £32.5m)

·    Interim dividend declared of 4.0p per share (H1 2024: 4.0p) and £1.4m deployed on share buyback programme during the period

CURRENT TRADING AND OUTLOOK

We have made a good start to H2 and continue to expect the Group to deliver a further increase in underlying profit in FY 2025, in line with market expectations. Our end markets have been operating in line with our assumptions. July was the strongest refinancing month of the year so far, as we expected. Mortgage pipelines are above historic norms, underpinning an expected uplift in refinancing activity across the rest of the year.

The Board is confident in the Group's prospects and its ability to capture the value accretive growth opportunities ahead underpinned by continued investments.

Results presentation

This announcement together with the associated investors' presentation will be available on: https://www.lslps.co.uk/investor-information/investor-communications

For further information, please contact:

Notes:

1          Stated on basis of continuing operations unless otherwise stated. Following the conversion of the entire owned estate agency network to franchises in H1 2023, the previously owned network was classified as a discontinued operation and is now presented as such in the Financial Statements. Refer to note 6 to the Financial Statements

2          Group (and Divisional) Underlying Operating Profit is stated before exceptional items, contingent consideration assets & liabilities, amortisation of intangible assets and share-based payments. From 2025 onwards, it also includes other sources of earnings from joint ventures ("JV"), such as loan notes issued to the JVs. This measure is reported to the Directors as it is considered to provide a consistent indication of both Group and Divisional underlying performance. Refer to note 5 to the Financial Statements for reconciliation of Group and Divisional Underlying Operating Profit to statutory operating profit/(loss) for continuing operations

3          Refer to note 5 to the Financial Statements for the calculation 

Notes on LSL

LSL is one of the largest providers of services to mortgage intermediaries and estate agent franchisees.

Over 2,600 advisers representing around 11% of the total purchase and remortgage market.

Its 63 estate agency franchisees operate 294 branches.

LSL is also one of the UK's largest providers of surveying and valuation services, supplying five out of the six largest lenders in the UK.

For further information please visit LSL's website: lslps.co.uk 

LEI: 213800T4VM5VR3C7S706

GROUP CHIEF EXECUTIVE'S REVIEW

This is my first set of results since I became CEO on 1 May 2025, and I am pleased to report financial and operational progress in the ongoing evolution of LSL. We have a well positioned business: our three divisions add value at all key points in the UK's property and mortgage lending ecosystem. This gives us a capital light B2B platform for UK residential property market services, well positioned to capture benefits from further leverage of the Group's collective strengths to deliver sustained growth.

In the first few months of my tenure, I have been spending significant time with colleagues, business partners and shareholders. This exercise has served to reinforce the strengths of LSL; a property platform with three divisions, each with leading market positions, and people and partners with incredibly deep knowledge and expertise in our markets, all underpinning LSL's strength.

I am very focused on our people and culture, looking to empower our teams, enhance accountability, and capture accretive operational improvements. I have been working closely with the senior leadership team, using our recently implemented incentive programme to ensure our teams' common interests are fully aligned and set on the goal of growth and value creation. Our property services platform carries untapped value, and we must utilise our data, knowledge and experience to continue to innovate and ensure our wider teams are ambitious in capturing the Group's growth prospects.  

LSL was founded 21 years ago, and its success has been built on deep domain knowledge and expertise, organisational resilience, opportunistic deal making, an independent and entrepreneurial business culture, and a cautious approach to risk. We plan to build on the foundations of this success, raising our sights by leveraging more of the Group's collective strengths. Much is already happening within the business, and we will continue to build on our strong foundations to deliver substantial organic growth, enhanced margins, and greater returns to shareholders.

LSL provides mission critical services throughout the entire property ecosystem, backed by rich data, enabling our customers to make smarter decisions and delivering better outcomes at all points of the value chain. We have the advantage of scale and can use it to drive operational excellence and efficiency across the Group.

Given our strength across residential and financial services, we remain cognisant of the continued regulatory focus the sector receives and the necessity to appropriately respond to developments. We believe that this increased regulatory focus will consolidate demand towards the larger operators, such as ourselves, and indeed that there is scope for us to benefit from a tightened regulatory environment as our scale and expertise enables us to offer best-in-class advice and support to our customers.

Whilst it is early days in my tenure as CEO, I am excited about the compelling growth opportunities open to us as a Group.

Review of H1 2025 Performance

We made positive progress in the first half of 2025, delivering revenue and underlying profit growth with underlying operating margin maintained at its highest level for 15 years. We continue to deliver structurally higher ROCE of over 30%, well above historical levels.

Revenue increased by 5% to £89.7m (H1 2024: £85.4m) in a recovering market and we maintained our strong market share in all three divisions. Growth was underpinned by additional lettings books acquisitions, continued B2C growth in Surveying and some targeted pricing action.

Group Underlying Operating Profit¹ was up 3% to £14.8m (H1 2024: £14.4m) and the Underlying Operating margin of 17% remained in line with the 15-year high reported in the prior period (H1 FY24: 17%). We continued to invest in our businesses (c.£1m) and absorbed c.£0.5m of cost due to the NI tax increase introduced on 1 April. Financial Services and Estate Agency Franchising profit remained broadly flat, and Surveying & Valuation returned to a more normalised operating margin level of 22% (H1 2024: 26%, H2 2024 20%). Central costs reduced £0.5m to £5m, which is a more normalised level. The Pivotal Growth JV delivered improved profitability as it continues to scale. On a statutory basis, Group Operating Profit was £11.0m (H1 2024: £13.0m), after exceptional costs of £1.8m (H1 2024: £0.1m).

As expected, the changes to Stamp Duty on 1 April 2025 led to a spike in housing transactions, resulting in an improvement in market activity, whilst interest rate uncertainty continued to suppress refinancing volumes, which were 10% lower than prior year. We held our strong share in each of our markets and are well positioned to take advantage of the increased refinancing activity expected in H2.

Capital Allocation

Our targeted programme of investment continues. The roll out of our new CRM system within Financial Services is continuing and, once complete, will improve productivity for LSL and our clients. In addition, we are working hard on commercialising our AVM in Surveying & Valuations, which was successfully tested with a top five lender in the period under review, and are in active discussions with a broader set of lenders. Once commercialised, this will provide an additional product within our portfolio.

We are supporting bolt-on letting acquisitions by our franchisees within Estate Agency, creating increased scale for our lettings business. In addition, the Pivotal Growth JV completed two bolt-on acquisitions post-period end, and continues to build scale. All of these are expected to support delivery of attractive returns ahead of the Group's cost of capital.

We returned capital to shareholders by way of our continuing share buyback scheme and have declared an interim dividend of 4.0p per share.

Net cash at the period end was £22.0m. I believe that maintaining a healthy cash reserve will provide the business with competitive advantages in the current economic environment and provides us with flexibility to continue to deploy capital both organically, as plans for the Group progress, and inorganically where compelling opportunities arise, balanced with returns to shareholders where appropriate.

Current Trading and Outlook

We have made a good start to H2 and continue to expect the Group to deliver a further increase in underlying profit in FY 2025, in line with market expectations. Our end markets have been operating in line with our assumptions. July refinancing was the strongest refinancing month of the year so far, as we expected. Mortgage pipelines are above historic norms, underpinning an expected uplift in refinancing activity across the rest of the year.

The Opportunities Ahead

The UK residential property and lending industry is worth c.£800 billion per annum, and LSL has market leading positions across the ecosystem. As such, we have a number of compelling opportunities to grow and to leverage our collective strengths.

We are working at pace on new organic initiatives whilst driving forward success in our core businesses and increasingly working together for the benefit of the wider Group. I am grateful for the commitment and support of my exceptionally able and talented colleagues across the Group; they are key in driving LSL forward.

I am fully committed to ensuring the Group embraces positive change to take advantage of the exciting opportunities ahead.

Adam Castleton

Group Chief Executive Officer

16 September 2025

Notes:

1          Group (and Divisional) Underlying Operating Profit is before exceptional items, contingent consideration assets & liabilities, amortisation of intangible assets and share-based payments. From 2025 onwards, it also includes other sources of earnings from joint ventures ("JV"), such as loan notes issued to the JVs. This measure is reported to the Directors as it is considered to provide a consistent indication of both Group and Divisional underlying performance. Refer to note 5 to the Financial Statements for reconciliation of Group and Divisional Underlying Operating Profit to statutory operating profit/(loss) for continuing operations

BUSINESS & FINANCIAL REVIEW

Business Review

Notes:

1          Following the conversion of the entire owned estate agency network to franchises in H1 2023, the previously owned network was classified as a discontinued operation and is now presented as such in the Financial Statements. Refer to note 6 to the Financial Statements

2          Group (and Divisional) Underlying Operating Profit is before exceptional items, contingent consideration assets & liabilities, amortisation of intangible assets and share-based payments.  From 2025 onwards, it also includes other sources of earnings from joint ventures ("JV"), such as interest received on loan notes issued to the JVs. This measure is reported to the Directors as it is considered to provide a consistent indication of both Group and Divisional underlying performance. Refer to note 5 to the Financial Statements for reconciliation of Group and Divisional Underlying Operating Profit to statutory operating profit/(loss) for continuing operations

Surveying & Valuation Division

Our Surveying & Valuation division has performed well, following increased allocations from existing customers, winning new contracts, and improving contract terms with no allocation losses. This continued in 2025, as surveyor utilisation rates returned to historic high levels and our emerging B2C business continued to deliver strong growth. The Group's asset management business is included within the Surveying & Valuation division.

·    Surveying & Valuation performance was robust, reflecting the benefit of contract extensions with improved terms as well as operational efficiency across the division

·      Surveying & Valuation revenue increased by 9% to £53.2m (H1 2024: £48.9m), reflecting a 7% increase in jobs performed and 2% increase in income per job

·    Asset Management revenues remained flat with H1 2024 at £2.6m.  The market remains below long-run trend levels. Profit was flat at £1.2m (H1 2024: £1.2m)

·      Surveying Underlying operating profit decreased to £10.7m (H1 2024: £11.7m), primarily due to normalised surveyor incentives and investment in our data strategy with our AVM development which we expect to deliver revenue in Q4 2025 and onwards. The statutory operating profit was £11.6m (H1 2024: £12.9m)

·      Underlying operating margin was 22% (H1 2024: 26%), reflecting normalised commission levels for Surveyors during the period. The statutory operating margin was 22% (H1 2024: 26%)

·    We estimate that our market share of physical and remote valuation instructions⁷ was around 37% (H1 2024: 38%), reflecting lender mix movements

·    Good progress continues to be made against strategic objectives to develop new surveying and valuation income from the end customer: B2C revenue increased by 43% to £4.0m (H1 2024: £2.8m), reflecting both the 38% increase in jobs performed and the 3% increase in income per job on the comparative period last year

·    Our AVM product is expected to generate its first revenues during Q4 2025 and we are in discussions with several lenders

Financial Services Division

We have reinforced the leading position of our PRIMIS network in the provision of services to independent mortgage brokers, with a renewed focus on smaller, mortgage-led financial services businesses. At 30 June 2025, PRIMIS members totalled 2,245 advisers who sell mortgage and protection (30 June 2024: 2,312) and 392 advisers selling only protection and general insurance products (30 June 2024: 535).

In December 2024, we announced a major programme of investment to enhance the technology solutions provided to PRIMIS advisers to improve efficiency and sales performance and underpin our leading market position. The rollout is progressing well, and we remain on track to spend £3m in 2025 on this project.

Our Financial Services Division is reported in two business lines: our core Financial Services Network business comprising PRIMIS and TMA mortgage club, and our share of profit after tax of the Pivotal Growth JV.

·    Total UK new mortgage lending increased by 22% to £134bn. LSL new mortgage lending grew by 23% to £15.2bn. Thus, the Group increased market share of the UK purchase and remortgage market³ to 11.3% (H1 2024: 11.2%)

·    LSL advisers continue to adapt effectively to changes in the mortgage market, increasing total revenue by 3% to £22.6m in a market which was around 5% higher. The weighting of margin dilutive product transfers in the refinancing market remained above the long-term average

·    The number of Network firms reduced by 5% to 1,084 as at 30 June 2025 (H1 2024: 1,146) as we reduced our numbers in protection only.

·    TenetLime profit contribution was in line with expectations, with the acquisition on track to deliver returns in excess of cost of capital

·    Financial Services underlying operating profit was £4.8m (H1 2024: £3.9m). The statutory operating profit was £2.4m (H1 2024: £2.9m)

·    Underlying operating margin was 18% (H1 2024: 18%). The statutory operating margin was 10% (H1 2024: 12%)

·    Network protection revenue reduced by 12% to £6.6m (H1 2024: £7.6m), reflecting the impact of strategic repositioning away from protection-only brokers

·    Our share of profits after tax in the Pivotal Growth JV was £0.1m (H1 2024: loss of £0.4m). The trading EBITDA of Pivotal (before transactional acquisition costs) was materially ahead of last year. The Group also recognised interest income of £0.4m in H1 2025 relating to loan notes issued to Pivotal

·    The Financial Services Network business has a regulatory capital requirement which represents 2.5% of its regulated revenues. The regulatory capital requirement was £6.2m at 30 June 2025 (31 December 2024: £6.4m; 30 June 2024: £6.4m), with a surplus of £28.0m (31 December 2024: £27.6m)

Pivotal Growth JV

Pivotal continues to gain momentum and has to date acquired 19 businesses, including 2 acquisitions completed in Q3 2025 with a strong M&A pipeline.

·    Pivotal Growth now has over 500 advisers, making it one of the UK's largest mortgage and protection brokers, giving it critical mass to leverage its scale to attract deals and drive revenue synergies and profitability

·    The Group's results include positive contribution to pre-tax profit from the JV during the first half as Pivotal continues to add scale and benefit from operational efficiency

·    Pivotal remains on track to deliver returns ahead of cost of capital

Estate Agency Franchising Division

We have now completed two years of trading as a fully franchised model for our Estate Agency business.  Our strategic focus is on further enhancing our franchising expertise to bring on new partners, expanding our geographic reach, and developing our services for franchisees.

·    The Estate Agency Franchise business delivered a robust residential sales performance, with the total number of exchange units 17% above 2024 in a market⁹ which was also 17% ahead. Estate Agency Franchising revenue was £13.0m (H1 2024: £13.0m)

·    We continued to support the growth of franchisees, including loans granted to facilitate 3 lettings book acquisitions, adding over 600 properties to the lettings portfolio during H1 2025.  These deals will deliver returns in excess of the Group's cost of capital.  The average lettings income per managed property was up c.+3% with total number of properties in line with the comparable period last year

·    Estate Agency Franchising underlying operating profit was £3.2m (H1 2024: £3.1m). The statutory operating profit was £2.7m (H1 2024: £2.6m)

·    Underlying operating margin was 24% (H1 2024: 24%). The statutory operating margin was 21% (H1 2024: 20%)

·    The number of properties under franchisees' management remained stable at 37,246 (30 June 2024: 36,952)

·    Total of 313 territories at 30 June 2025 (30 June 2024: 307), representing 65% UK postcode coverage

Financial Review

Group Income Statement¹ Summary

Profitability Progress: The Group has delivered 5% or £4.3m growth in revenue period on period, after the downward effects of exiting a number of protection-only adviser firms, and a contraction in activity in Land and New Homes due to a contract loss. On this additional revenue the Group has maintained overall margin at historical high levels of 17% (on underlying operating profit). This margin has been constrained by additional costs in some areas, such as the investments into CRM and Data-driven products. In addition, surveyor costs have returned to more normalised levels.

Group Revenue increased 5% to £89.7m (H1 2024: £85.4m) in a total lending market that was around 5% higher and housing market up by 17%. The increase was primarily in the Surveying & Valuation division with a 9% increase year on year, driven by a 10% increase in total Bank of England mortgage approvals. The Estate Agency Franchising division remained broadly flat, however, residential sales increased significantly by 24% in H1 2025 compared to H1 2024 but was offset by a reduction in Land & New Homes revenues.

Group Underlying Operating Profit² increased overall to £14.8m (H1 2024: £14.4m), with a year-on-year improvement in Central costs and Pivotal Growth JV contribution, alongside strategic investments including CRM and Data. There was a fall in the Surveying and Valuation division due to increased surveyor incentive payments and continued investment in AVM development. Group Underlying Operating margin remained at 17%, maintaining the highest margin for over 15 years, particularly reflecting high surveyor utilisation in Surveying & Valuation.

Group Operating Profit decreased to £11.0m (H1 2024: £13.0m), due to the normalisation of surveyor incentive payments, £1.8m of exceptional costs across the Group and TenetLime Limited legal costs in the Financial Services Division, offset by an improvement in trading performance in the period.

Adjusted operating expenditure³, comprises employee costs, other operating costs, and depreciation and totalled £75.3m in 2025, 6% higher than prior year (H1 2024: £70.9m), with the movement comprising the net effect of employee cost increases of £3.0m in Surveying & Valuation (arising from 9% increase in revenues and the increase in surveyor incentives), Central costs  down by £0.5m to £5.0m (H1 2024: £5.5m) due to a reduction in salary and bonus costs, audit fee reductions and lower strategy support costs, and increased cost of £0.5m due to the National Insurance rise from 1^st April 2025.

Exceptional items⁵ There were no gains in H1 2025 (H1 2024: £0.4m). The prior year gain related to the increase in contingent consideration receivable on the disposal of Group First (£0.3m) and release of dilapidation provision (£0.1m). Exceptional costs of £1.8m (H1 2024: £0.5m), are primarily due to restructuring costs in Financial Services (£0.6m), Central CEO and CFO change costs (£0.7m) and costs incurred as a result of the administration of TenetLime's seller, Tenet Group Limited (£0.5m). The H1 2024 exceptional costs were primarily a decrease in contingent consideration receivable on the disposal of RSC and EFS (£0.3m) and corporate transaction costs.

Taxation The tax charge of £2.9m (H1 2024: £3.6m) represents an effective tax rate of 26.0% (H1 2024: 26.0%), slightly up on UK tax rate of 25.0% due to some non-deductible expenditure.

Dividend. The solid performance in H1 2025 underpins the Board's confidence in the Group's businesses. The Board has declared an interim dividend of 4.0 pence per share (2024: 4.0 pence). The Group's dividend policy continues to be a pay-out of 30% of Group Underlying Operating Profit after finance and normalised tax charges³. The ex-dividend date for the interim dividend is 2 October 2025, with a record date of 3 October 2025 and a payment date of 7 November 2025. Shareholders can elect to reinvest their cash dividend and purchase additional shares in LSL through a dividend reinvestment plan. The election date is 17 October 2025.

Share buyback. The Board's approach to capital allocation is unchanged. To date, £3.0m of the share buyback programme announced on 25 April 2024 has been deployed. Shore Capital will undertake the remainder of the share buyback programme in place of Numis Securities Limited. The share buyback programme will continue until it reaches the programme's maximum consideration of £7m.

Group Statement of Cash flows Summary

Cash Generation: The Group maintains a healthy cash balance at £22.0m at 30 June 2025. In the period Cash Flow was impacted by net working capital flows that enhanced the cash balance at the end of December 2024. This has unwound in the period leading to a net outflow of working capital. Operating cash flow remains robust and positive and is expected to normalise in H2.

The Group remains cash generative, with operating cash flows before working capital movements of £16.0m (H1 2024: £16.2m), broadly in line with H1 2024 reflecting the higher underlying operating profits generated in 2025 and the reduced Central costs. The Group is cash generative and ordinarily achieves a cash flow conversion rate³ of 75% to 100%. The ratio in 2025 was 50% (H1 2024: 81%) reflecting timing impact of collections processed at year end, adversely affecting working capital movements, with a £7.5m outflow in H1 2025 (H1 2024: £2.8m outflow). Management continues to monitor cash flow performance closely and expects its cash conversion rate to return to a normalised level in H2 2025.

Key cash outflows in H1 2025 included:

·    Capital expenditure on Property Plant and Equipment ("PPE") and intangibles of £2.5m (H1 2024: £1.2m)

·    Exceptional costs paid in relation to Tenet group administration process costs, divisional restructures, dilapidation and AR provision utilisation in 2025 of £2.4m (H1 2024: £1.5m)

·    Payment of the 2024 final dividend of £7.6m (H1 2024: £7.6m) and the repurchase of shares under the share buyback programme of £1.4m (H1 2024: £0.3m)

·    Loans to franchisees to support lettings books' acquisitions of £0.9m (H1 2024: £nil)

·    Corporation tax paid in 2025 of £3.1m as the Group returns to more normalised taxable profits (H1 2024: £nil)

Bank facilities

In January 2025, LSL agreed an amendment and restatement of its banking facility, putting in place a £60m committed revolving credit facility, with a maturity date of January 2030, replacing a £60m facility maturing in May 2026. The terms have remained materially the same as the previous facility, provided by the same syndicate members as before, Barclays Bank UK plc, NatWest Bank plc and Santander UK plc. For further flexibility to support growth, the facility retains a £30m accordion, on request by LSL, subject to bank approval.

Group Balance Sheet Summary

Robust balance sheet: the Group retains a healthy balance sheet with strong liquidity. In addition to cash balances of £22.0m, the bank facility of £60m remains unutilised. The capital-light model of franchising leads to high and increasing ROCE of 31% over the last 12 months, up from 29%.

Assets

·    Goodwill and Intangibles: These asset classes remain largely unchanged in the period.

·    PPE: Capital expenditure on owned PPE was £0.9m (H1 2024: £0.3m), reflecting ongoing IT investment across all divisions. There has also been £2.3m of additions in new offices and car lease agreements.

·    Financial assets: During H1 2023 the Group disposed of Group First, RSC and Embrace B2C brokerage businesses to Pivotal Growth, with contingent consideration receivable in 2025 based on 7x 2024 EBITDA performance. As at 30 June 2024, the asset is recorded at £5.7m (31 December 2024: £5.8m, H1 2024:  £5.3m). In September 2025, the Group received final contingent consideration of £5.4m after working capital adjustments.

·    Loans to joint venture: In December 2024, the Group provided funding of £7.6m to Pivotal Growth in the form of 10% unsecured loan notes. No repayments were made in H1 2025 with £0.4m interest income recognised during the period.

·    Investment in joint venture: Our 46.5% share of Pivotal Growth is equity method accounted with minimal change in value

·    Investment in subleases (total current and non-current):  The Group is now an intermediate lessor, following the Estate Agency conversion to a wholly franchised model with the carrying value now only £0.5m.

·      Loans to franchisees and appointed representatives (Network firms): This total balance increased from £1.8m to £2.9m in the period. Loan facility agreements are in place with franchisees of Estate Agency Franchising. In H1 2025, the Group issued loans of £1.4m. Loans to FS appointed representatives are granted to some brokers joining the PRIMIS network and were £0.5m as at 30 June 2025.

Liabilities

·      Financial liabilities (total current and non-current) - 30 June 2025: £10.0m (31 December 2024: £9.1m, 30 June 2024: £10.2m) Contingent consideration liabilities - 30 June 2025: £3.3m (31 December 2024: £3.3m, 30 June 2024: £3.7m) These relate solely to the cost of acquiring the intangible relationship assets in TenetLime in February 2024, with the consideration of £3.3m adjusted at 30 June 2025 for the latest update of retained advisers and discounting. IFRS 16 lease financial liabilities - 30 June 2025: £6.6m (31 December 2024: £5.8m, 30 June 2024: £6.6m) The movement in the period reflects payment of lease liabilities of £1.5m and disposals on assignment to franchisees of £0.2m, offset by new lease additions of £2.3m.

·      Provision for liabilities (total current and non-current) - 30 June 2025: £11.4m (31 December 2024: £10.2m, 30 June 2024: £11.7m) PI claim provisions of £3.1m (31 December 2024: £2.4m, 30 June 2024: £3.0m) include the Surveying & Valuation PI provision of £2.2m (31 December 2024: £1.9m, 30 June 2024: £2.3m), the Financial Services PI provision of £0.9m (31 December 2024: £0.4m, 30 June 2024: £0.7m). The Group has recognised an asset of £0.7m against received claims in other debtors at 30 June 2025 (31 December 2024: £0.3m, 30 June 2024: £0.5m). Dilapidations and restructuring provisions relating to Estate Agency Franchising following the wholesale franchising in 2023, totalled £5.9m at 30 June 2025 (31 December 2024: £6.0m, 30 June 2024: £8.1m).

1          Based on continuing operations unless otherwise stated. Following the conversion of the entire owned Estate Agency network to franchisees in H1 2023, this was classified as a discontinued operation and is now presented as such in the Financial Statements. Refer to 6 to the Financial Statements

2          Group (and Divisional) Underlying Operating Profit is before exceptional items, contingent consideration assets & liabilities, amortisation of intangible assets and share-based payments. Refer to note 5 to the Financial Statements for reconciliation of Group and Divisional Underlying Operating Profit to statutory operating profit/(loss) for continuing operations

3          Refer to note 5 to the Financial Statements

4          Refer to note 10 to the Financial Statements

5          Refer to note 7 to the Financial Statements

6          Refer to note 6 to the Financial Statements

7          Number of approvals for lending secured on dwellings, BoE Bankstats tables table A5.4 (Jul 2025)

8          Mortgage lending excluding product transfers - new mortgage lending by purpose of loan, UK (BOE) - BoE Bankstats tables table A5.3 (Jul 2025)

9          Number of residential property transaction completions with value £40,000 or above, HMRC (Jul 2025)

Principal Risks and Uncertainties

The principal risks and uncertainties relating to the Group's operations are disclosed on pages 35 to 38 of the Group's Annual Report and Accounts 2024 (which can be accessed on the Group's website: www.lslps.co.uk). Having considered the principal risks and uncertainties, applicable for the six months ended 30 June 2025, the Board has concluded that these remain the same as those included within the Annual Report and Accounts 2024.

Directors' Responsibility Statement

Each of the Directors (as listed below) confirms that to the best of their knowledge:

·      The Interim Condensed Consolidated Group Financial Statements for the period ended 30 June 2025 have been prepared in accordance with IAS 34 'Interim Financial Reporting'.  

·      The interim management report includes a fair view of the information required by the Disclosure and Transparency Rules sections 4.2.7R and 4.2.8R, namely: 

(a) an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; 

(b) a description of the principal risks and uncertainties for the remaining six months of the financial year;

(c)  details of related-party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the company during that period; and

(d) any changes in the related-party transactions described in the last annual report that could have a material effect on the financial position or performance in the period. 

By order of the Board of Directors

Adam Castleton
Chief Executive Officer
16 September 2025

Board of Directors

Adrian Collins
Gabby Appleton
Adam Castleton
Darrell Evans
Sonya Ghobrial
James Mack
Michael Stoop

Interim Group Income Statement

for the six months ended 30 June 2025

Interim Group Statement of Comprehensive Income

There was no other comprehensive income during the six months ended 30 June 2025 (2024: £nil).

Interim Group Balance Sheet

as at 30 June 2025

Interim Group Statement of Cash Flows

for the six months ended 30 June 2025

Cash and cash equivalents are net of bank overdrafts, see note 12.