LSL Property Services (LSL) H1 2026 earnings summary

Executive summary

• Delivered profit and margin growth in H1 2026, with revenue up 3% to £92.3m and underlying operating profit up 11% to £15.9m, in line with expectations.

• Launched a groupwide transformation programme targeting at least £5m in annualised benefits by 2027, focusing on simplification, finance, procurement, and technology, with £4m in implementation costs over 2026–2027.

• Maintained strong cash generation and high returns, with ROCE at 36% and cash conversion at 91%.

• Interim dividend held at 4.0p per share; ongoing share buyback programme with £4.8m deployed and up to £12m planned by January 2027.

• Commercial progress across the group, focusing on simplification, collaboration, and leadership.

Financial highlights

• Group revenue increased 3% year-over-year to £92.3m; underlying operating profit rose 11% to £15.9m, with margin up 130bps to 17.3%.

• Adjusted diluted EPS up 14% to 11.7p, supported by higher profit after tax and share buybacks.

• Return on capital employed reached 36%, up from 31% year-over-year.

• Operating cash conversion was 91% over the last 12 months.

• Net cash at period end was £22m after £12m returned to shareholders.

Outlook and guidance

• Trading since period end has developed as anticipated; expectations for 2026 remain unchanged, with full-year profit growth anticipated.

• Forecasts increased revenue and another year of profit growth in 2026, marking a fourth consecutive year of profit growth.

• Operating cash conversion expected between 75% and 100%, with capital expenditure of £3–5m.

• Transformation programme expected to deliver at least £5m annualised benefit by 2027.

• Focus remains on disciplined execution, selective investment, and delivering attractive shareholder returns.