LSL Property shares jump; revenue resilient at £266m

Shares of Newcastle-based LSL Property Services rose about 14% on Wednesday after it published “highly resilient” results for the year ended December 31, 2020, that have been followed in the first quarter of 2021 “by very strong financial performance and trading momentum.”

LSL said profit before tax increased 31% to £20.9 million despite revenue falling 14% to £266.7 million.

LSL is one of the largest UK providers of services to mortgage intermediaries and mortgage and protection advice to estate agency customers, completing £32.6 billion of mortgages in 2020.

The group’s brands include Your Move, Reeds Rains and Marsh & Parsons.

CEO David Stewart said: “Our financial performance during 2020 highlighted the resilience and strength of our group.

“The work we have been able to complete on our strategy emphasises our exciting future, in which financial services will be our chief engine of growth and enhanced profitability.

“Our PRIMIS network is one of the leading service providers to mortgage intermediaries, whilst our heritage provides us with deep expertise in the provision of mortgage and protection advice to estate agency customers. 

“The group has invested significantly in its digital capability, which was enhanced further by the recent acquisitions of Mortgage Gym and Direct Life and Pension Services, and we now have industry-leading technology available.

“These factors combined to make LSL a compelling partner for Pollen Street Capital and The Property Franchise Group plc, in two recently announced strategic initiatives that we expect to deliver significant value for our shareholders.

“However, I would add that we have been equally encouraged by the excellent performance of our Estate Agency and Surveying businesses. 

“In Estate Agency we are exceptionally well placed to benefit from the current strong market, having increased our market share since the end of the lockdown. 

“Our Surveying business is similarly performing extremely well, with opportunities to broaden its product set to lenders and customers …

“With current market conditions supporting growth in all of our businesses, I believe LSL is exceptionally well-positioned to continue to grow both organically and via acquisition and we look forward to the future with confidence.”