LSL looks to expand mortgage business amid growing profit

Profit at LSL Property Services grew by nearly a third last year, as the company enjoyed a rebound in business during the second half of 2020. The second largest estate agency chain in the UK said pretax profit grew by 31% year-on-year to £20.9m, as its mortgage advice, valuations and estate agency businesses all saw high levels of pent-up demand after the first Covid-19 lockdown. Revenue fell by 14% for the period ending 31 March to £266.7m, while net bank debt was also whittled down to a historically low figure of £1.6m. Chief executive David Stewart added that the company had continued its momentum into the first quarter of 2021, driving profit in its financial services division up 16% to £13.5m. Through its mortgage network Primis, LSL accounted for £32.6bn of mortgage completions in 2020, representing approximately 9% of the total purchase and remortgage market. The company now employs 2,585 financial advisers, up by 8% from 2019, and expects the business to overtake its surveying arm as its most lucrative division by 2023. LSL last week announced it had formed a joint venture mortgage broker with Pollen Street Capital, with £200m available to fund acquisitions. “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,” Stewart said. “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.” To send feedback, e-mail alex.daniel@egi.co.uk or tweet @alexmdaniel or @estatesgazette Photo by Jeff Blackler/Shutterstock