Stock Markets January 27, 2026

LSL posts in-line FY25 results, unveils £12m buyback and outlines expansion moves

Revenue and operating margins improve while balance sheet remains cash-positive; management signals continued profit growth and strategic dealmaking

By Caleb Monroe
LSL posts in-line FY25 results, unveils £12m buyback and outlines expansion moves

LSL Property Services reported fiscal 2025 results consistent with market expectations, with revenue rising 6% to around £183 million and underlying operating profit up 15% year-over-year. Margins reached roughly 18% and the group finished the year with net cash of £27.8 million. Management announced a new £12 million share buyback after completing a prior £7 million programme, described trading into 2026 as positive, and reiterated guidance for further profit growth and strong cash conversion. The company also disclosed a series of strategic transactions and commercial wins across its Estate Agency, Financial Services and Pivotal Growth units.

Key Points

  • Revenue rose about 6% to approximately £183 million; underlying operating profit increased 15% with margins around 18% - affects property services and real estate sectors.
  • Net cash position of £27.8 million and a new £12 million share buyback announced after completing a previous £7 million programme - relevant to investors and corporate finance.
  • Strategic moves include the acquisition of National Search Service, first Automated Valuation Model contract with a major UK bank, and Pivotal Growth expanding to 21 acquisitions backed by a new senior debt facility - impacts conveyancing, mortgage services and M&A activity.

LSL Property Services on Tuesday delivered fiscal 2025 results that matched market expectations and revealed a fresh share repurchase plan valued at £12 million. The group reported full-year revenue of approximately £183 million, an increase of 6% on the prior year, while underlying operating profit rose 15% year-on-year and margins landed at about 18%.

The company closed the year with a net cash position of £27.8 million, which exceeded analyst forecasts, and confirmed it had completed a prior £7 million buyback on Monday. Management said trading had started 2026 on a "positive" footing and that the refinancing tailwind experienced in the second half of 2025 has continued into the new year. LSL said it expects "another year of profit growth in 2026 and ongoing strong cash conversion."

Operationally, the Estate Agency Franchising Division reported an improving transaction pipeline. Management highlighted the division's limited exposure to Prime and Outer Prime London markets, where transactions remain subdued, as a factor supporting relative resilience in volumes.

Within Financial Services, LSL increased its market share to 11.8% from 11.6% over the year. The group also noted increased franchisor support for lettings book acquisitions, recording its tenth such transaction in 2025 - up from three in 2024 - during the fourth quarter.

Since the fiscal year end, LSL completed the purchase of National Search Service, a property search business that will complement the group’s existing conveyancing capability in the Estate Agency division. The company also secured its first Automated Valuation Model contract with a major UK banking group, a commercial win that ties into its services offering.

LSL’s Pivotal Growth unit continued to expand by completing two further acquisitions during the year, taking the unit's total to 21 deals. In December 2025, Pivotal Growth agreed a new senior debt facility that enabled repayment of LSL loan notes and is intended to support ongoing expansion without the need for additional shareholder funding.


Summary

LSL reported steady top-line growth and improved margins for FY25, exited the year with a stronger-than-expected cash position, launched a new £12 million buyback after finishing a £7 million programme, and outlined recent acquisitions and commercial wins across its business lines. Management signalled continued profit growth and robust cash conversion for 2026.

Key points

  • Revenue rose about 6% to roughly £183 million; underlying operating profit increased 15% with margins near 18% - impacts the property services and real estate sectors.
  • Net cash of £27.8 million and a new £12 million share buyback after completing a £7 million programme - relevant to investors and corporate finance activity.
  • Strategic progress: acquisition of National Search Service, first Automated Valuation Model contract with a major UK bank, and expansion of Pivotal Growth to 21 deals supported by a new senior debt facility - affecting conveyancing, mortgage services and corporate M&A activity in the property sector.

Risks and uncertainties

  • Transaction volumes in Prime and Outer Prime London remain subdued - this geographic weakness could affect segments of the estate agency market.
  • The company’s outlook relies in part on the refinancing tailwind seen in H2 2025 continuing into 2026; any change to that financing environment could influence profit and cash conversion expectations, with implications for corporate finance and debt markets.
  • Pivotal Growth’s expansion depends on the new senior debt facility to fund acquisitions without further shareholder equity; execution of acquisition strategy and reliance on external debt funding are uncertainties for the group’s growth plans and credit profile.

Risks

  • Subdued transaction activity in Prime and Outer Prime London areas could limit recovery in segments of the estate agency market.
  • Expectations for continued benefit from the refinancing tailwind into 2026 are uncertain; changes in financing conditions could affect profit growth and cash conversion forecasts.
  • Pivotal Growth’s reliance on a senior debt facility to fund expansion without additional shareholder funding introduces execution and funding risk for the group’s growth strategy.

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