LSL Property Services, one of the largest providers of mortgage and valuation services, has reported significantly improved results due a company restructuring and improved sentiment in the housing market.
Revenue rose by 18 per cent year on year, from £72.5m to £85.4m, while underlying profit rose by 354 per cent year on year, from £3.2m to £14.4m.
Profit before tax rose by 85 per cent to £13.8m, while earnings per share rose by 87 per cent to £9.9m.
While this may seem like a significant rise in percentage terms, it was operating on low comparatives: high interest rates and a slowdown in house buying had decimated profit in 2023.
The company, which owns Your Move and Reeds Rains estate agencies, was forced to warn on its profit last year after “significant changes in the mortgage market”.
However, the group hiked its expectations in April after it said that mortgage applications over the first two months of the year were “significantly ahead” of forecasts due to expectations of a rate cut.
The group also streamlined operations during the period, resulting in a “much simpler” company.
“The improved trading reflects better market conditions but also the benefits of the new estate agency franchise model, improved lender contracts, and our decision to retain surplus capacity throughout the second half of 2023,” the company said.
It said expectations for the full year remained unchanged from April.
Group chief executive David Stewart said: “Following a period of significant strategic transformation, we have delivered a robust financial performance in the first half of 2024 during a period in which our end markets have been fairly muted.
Each of our businesses has achieved strong market share whilst focusing on delivering against our strategic priorities and putting in place a solid platform for future growth.
“Today, LSL is a more streamlined, agile Group comprising three strong businesses, each with attractive organic growth opportunities that are well positioned to capitalise from any further improvement in the housing and mortgage markets. Our focus is on maximising the performance of our businesses to deliver value to shareholders.”