LSL Property Services results for the year to end of December show  revenue fell 34% on 2022 figures from £217.5m to £144.4m. Underlying operating profit was also down (74%) from £35.8m in 2022 to £9.3m for 2023.

However, the company was keen to point to a positive final quarter of 2023 and said momentum had continued to build further in 2024, particularly in its surveying & valuation division.

Over the first quarter, underlying operating profit was materially above the same period in 2023, according to LSL, reflecting the benefits of the group’s transformation programme completed in 2023 as well as improving market conditions. Net cash was £35.0m at the year end.

Commenting on the results LSL chief executive David Stewart said: “2023 marked a period of significant progress in our transformation to a higher margin, less capital-intensive business that will perform more consistently through market cycles. Against the backdrop of very challenging market conditions, we have simplified and restructured our financial Services and estate agency businesses. Both are now focused on business-to-business services with a significantly lower cost base and the potential for higher free cash flow generation.”

He added: “Following this significant restructuring, LSL is now a more streamlined, agile group comprising three market leading businesses with high return and organic growth opportunities that are well positioned to capitalise from the recent recovery in the housing and mortgage markets.”

Strategic highlights included conversion of entire owned estate agency network to franchisees.   The sale of our four direct-to-consumer (B2C) financial service advice businesses was completed in April 2023 to Pivotal Growth.

In August 2023, LSL announced the acquisition of TenetLime mortgage network, with completion taking place on 2 February 2024, following FCA approval and the successful migration and onboarding of over 150 network firms with over 250 advisers.

Disposal of Marsh & Parsons,  LSL’s London estate agency brand for a final consideration of £26.1m.