LSL Property Services has announced a significant rise in operating profits, showcasing resilience amidst a challenging housing market.
Despite transitioning to a franchise model, the company has not only maintained but sometimes increased its market share, signalling robust strategic positioning.
In the first half of 2024, LSL Property Services recorded a dramatic increase in profits, underpinned by successful strategic transformations. The transition to a franchise model saved substantial operational costs, eliminating £140 million in annual expenses. Operating profit soared by 72% to £13 million compared to the first half of 2023, while underlying operating profit from all operations surged 354% to £14.4 million. This fiscal growth was accompanied by an 18% increase in revenue, reaching £85.4 million.
Through strategic acquisitions, LSL bolstered its financial services, especially with the purchase of TenetLime, enhancing its mortgage market share. This acquisition followed the collapse of Tenet Group, providing an opportunity for LSL to augment its advisory services. The financial services division saw its underlying operating profits rise from £3.8 million to £4.3 million, despite a general market slowdown.
The group managed to grow market share despite overall muted market conditions, demonstrating strong adaptability in its operational strategies.
LSL’s shift to a franchise-based model not only cut costs but also provided a platform for expansive growth in varied market conditions. The company’s strategy is geared towards sustained organic growth within its now three core business units.
Future ambitions include maximising current market positions to ensure long-term success amidst evolving housing and mortgage trends.
Steady focus on cost efficiency and strategic partnerships has poised LSL Property Services for continued resilience in the housing market.
The company’s tactful adaptation to market conditions hints at sustained growth and value creation for shareholders.
