Interim report
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RNS Number : 7161ULSL Property Services PLC15 September 2026
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15 September 2026Ā LSL Property Services plc (āLSLā or āGroupā)HALF YEAR RESULTS TO 30 JUNE 2026 Ā Further proļ¬t and margin growth, transformation programme launched to deliver eļ¬ciencies, on track tomeet full year expectations LSL Property Services, one of the UKās largest providers of services to the property and mortgage market,reports its interim results for the six months ended 30 June 2026. Adam Castleton, Group Chief Executive Oļ¬cer of LSL, commented: āLSL performed well in the ļ¬rst half, delivering further proļ¬t and margin growth and strong cash generation.Our markets developed broadly as expected despite prevailing negative sentiment. We launched a Group-wide transformation programme expected to improve our structural cost-eļ¬ectivenessand leverage our scale. The programme will simplify how we operate, strengthen our capabilities andsupport further structural improvement in margins.ā FINANCIAL HIGHLIGHTS1 Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Group Revenue increased 3% to Ā£92.3m (H1 2025: Ā£89.7m) with LSL maintaining strong market shares. Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Group Underlying Operating Proļ¬t increased 11% to Ā£15.9m (H1 20252: Ā£14.4m). Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Group Underlying Operating Margin increased to 17% (H1 20252: 16%). Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Statutory Group Operating Proļ¬t increased 14% to Ā£12.5m (H1 20252: Ā£10.9m). Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Adjusted Diluted Earnings per Share increased 14% to 11.7p (H1 20252: 10.3p).Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā ROCE (LTM) increased to 36% (H1 2025 LTM: 31%), well above historic levels, with cash conversion(LTM) consistently high at 91% (31 December 2025: 91%). Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Net Cash4 of Ā£22.0m at 30 June 2026 (30 June 2025: Ā£22.0m).Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Executing cost control with previous restructuring beneļ¬ts coming through and also central costsreduced by 8% to Ā£4.5m (H1 2025: Ā£5.0m). Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Interim Dividend maintained at 4.0p per share (H1 2025: 4.0p).Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā£12m Share Buyback Programme progressed during the period and is on track to complete by January2027. STRATEGIC AND OPERATIONAL HIGHLIGHTS Transformation programme launched to improve structural eļ¬ectiveness Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā To deliver a simpler operating structure and remove duplication we have launched a Group-wide transformation programme. Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā This will support our ambition to increase Group Underlying Operating Margin above 20% and the delivery of a more connected and proļ¬table organisation. Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā This programme is expected to deliver at least Ā£5m of annualised beneļ¬t, which builds as implementation progresses through 2027. Exceptional implementation costs of Ā£4m will be spread over 2026 and 2027 with beneļ¬ts building through 2027. Resilient markets and business model Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā End markets developing broadly in line with our expectations, despite prevailing negative sentiment. Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Lettings remain resilient, with the Rentersā Rights Act successfully supported and implemented across our franchise network and underlying landlord activity remaining stable. Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Mortgage activity continues to beneļ¬t from the structural demand for remortgaging. Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Residential sales transactions were down 4% compared to H1 2025 which included a Stamp Duty spike. The market in London was softer where we have limited exposure. Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā We beneļ¬t from a diversiļ¬ed mix of income, including lettings, remortgaging, platform and other fees. Therefore, the majority of Group income is not directly dependent on residential property transactions. Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Regulatory developments broadly positive for us, including supportive FCA interim ļ¬ndings on the pure protection market, successful implementation of the Rentersā Rights Act across our network, and the Governmentās roadmap for reform of the home buying and selling process well aligned with our capabilities across the residential property and mortgage ecosystem.Ā Ā PROGRESS ACROSS OUR BUSINESSES
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Surveying & Valuation Division Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Revenue increased by 6% to Ā£56.2m (H1 2025: Ā£53.2m), including the beneļ¬t from allocation wins. Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Underlying Operating Proļ¬t rose by 11% to Ā£13.1m (H1 2025: Ā£11.9m), with Underlying Operating Margin increasing to 23% from 22%, including the beneļ¬t from cost eļ¬ciencies and a strong performance in Asset Management. Financial Services Division Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Mortgage revenue increased by 8% with a market share of total mortgage lending maintained at 8.9% (H1 2025: 8.9%) and an increase in revenue per adviser. Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Total revenue in the period was Ā£22.8m (H1 2025: Ā£23.5m) and Underlying Operating Proļ¬t was Ā£3.4m (H1 20252: Ā£4.3m) principally the impact of the prior year strategic exit of a number of protection only ļ¬rms and ongoing investment in the new CRM. Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā We made a small regional acquisition after the period end which we expect will add around 50 advisers to the PRIMIS network. Estate Agency Franchising Division Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Very strong performance in the Estate Agency Franchising Division with Underlying Operating Proļ¬t increased 24% to Ā£3.9m and Underlying Operating Margin increased to a record ļ¬rst half margin of 30%, supported by the beneļ¬ts of prior year restructuring. Revenue increased 2% to Ā£13.2m. Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā We made investments to support our end-to-end conveyancing proposition to provide an enhanced service to our franchisees and to create propositions which can be sold across the Group. Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Our franchise branch footprint grew by 13 reļ¬ecting the acquisition of a small franchise network on the South Coast and growth across our existing franchise partners. Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā We supported our franchisees with seven lettings books bringing our total properties under management to 38,660, up 4% from the prior year period. Ā Pivotal Growth Investment (JV) Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Continued to build scale and value, with three acquisitions completed in 2026 and trading EBITDA ahead of the prior year. Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā The deal pipeline remains strong and acquisitions are self-funded. CURRENT TRADING AND GUIDANCE Trading since the period end has been as anticipated and the Board's expectations for FY2026 are on track,with our expectation to deliver a further increase in proļ¬ts. The business continues to deliver ļ¬nancially with strong cash generation and high returns. We are focused ondisciplined execution, delivering the beneļ¬ts of the Group-wide transformation programme and continuingto invest selectively to strengthen the Group and deliver attractive returns for shareholders. FINANCIAL SUMMARY Key Financials1 Unaudited 6 months to 30.06 2026 Restated2 Unaudited 6 months to 30.06 2025 Period on period change Group Revenue (Ā£m) 92.3 89.7 3% Group Underlying Operating Proļ¬t2,3 (Ā£m) 15.9 14.4 11% Group Underlying Operating Margin2 (%) 17% 16% 130bps Group Operating Proļ¬t2(Ā£m) 12.5 10.9 14% Proļ¬t Before Tax (Ā£m) 12.1 11.3 7% Cash Flow from Operations (Adjusted)5 (Ā£m) 9.2 7.4 24% Net Cash4 at 30 June (Ā£m) 22.0 22.0 - Basic Earnings per Share (pence) 8.6 8.0 8% Adjusted Basic Earnings per Share5 (pence) 11.9 10.4 14% Interim Dividend per share (pence) 4.0 4.0 -
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Results presentation This announcement together with the associated investorsā presentation are available on: https://www.lslps.co.uk/investor-information/investor-communications For further information, please contact: LSL Property Services plc Adam Castleton, Group Chief Executive Oļ¬cer David Tilak, Group Chief Financial Oļ¬cer Patrick Yau, Head of Investor Relations +44 7884 654179 / investorrelations@lslps.co.uk Burson Buchanan +44 207 466 5000 / LSL@buchanan.uk.com Helen Tarbet Sophie Wills Toto Berger Jesse McNab Notes: 1 Ā Ā Ā Ā Ā Ā Ā Ā Ā Stated on basis of continuing operations unless otherwise stated. Following the conversion of the entire owned estate agency network to franchises in H1 2023, the previously owned network was classiļ¬ed as a discontinued operation and is now presented as such in the Financial Statements. Refer to note 6 to the Financial Statements. 2 Ā Ā Ā Ā Ā Ā Ā Ā Ā Comparative restated due to revised deļ¬nition of Group Underlying Operating Proļ¬t. Refer to note 5. 3 Ā Ā Ā Ā Ā Ā Ā Ā Ā Group (and Divisional) Underlying Operating Proļ¬t represents the Group's operating proļ¬t adjusted for share-based payments, amortisation of intangible assets, contingent consideration movements and exceptional items, and excludes all income and expenses arising from joint ventures, associates, and equity-accounted investments. Refer to note 5 to the Financial Statements for reconciliation of Group and Divisional Underlying Operating Proļ¬t to operating proļ¬t/(loss) for continuing operations. 4 Ā Ā Ā Ā Ā Ā Ā Ā Ā Refer to note 12 to the Financial Statements for the calculation. 5 Ā Ā Ā Ā Ā Ā Ā Ā Ā Refer to note 5 to the Financial Statements for the calculation. Ā About LSL LSL is one of the UKās largest providers of services to mortgage intermediaries and estate agent franchiseesand surveying and valuations services, supplying ļ¬ve out of the six largest lenders in the UK. With over 20years of experience, the Group operates across the UK through three core businesses: Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā The Surveying & Valuations Division provides surveyor-led valuations to UK mortgage lenders and operates one of the UKās largest networks of RICS qualiļ¬ed surveyors. Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā The Financial Services Division oļ¬ers an extensive product panel, compliance and other services to over 2,500 advisers and 1,000 ļ¬rms accounting for around 12% of the total purchase and remortgage market. It also has a joint venture investment, Pivotal Growth, established in 2021 with Pollen Street Capital. Ā·Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā The Estate Agency Franchising Division has 70 franchisees operating in over 320 locations across the UK. The Groupās mission is to deliver trusted property services powered by data and expertise to enable peopleand businesses to thrive. For further information please visit LSL's website: www.lslps.co.uk Legal Entity Identiļ¬er: 213800T4VM5VR3C7S706 Ā GROUP CHIEF EXECUTIVEāS REVIEW We performed well in the ļ¬rst half of 2026, delivering further proļ¬t and margin growth, high cash generation and returns. Our markets developed broadly in line with our expectations, and we remain on track to deliver a further increase in proļ¬ts. The shape of our business continues to provide important resilience. We are predominantly B2B and capital- light, with the majority of Group income not directly dependent on residential property transactions. Together with high returns on capital and strong cash generation, this gives us a solid base from which to continue improving the performance of the Group. We are making progress on our mission to leverage the scale of the business, data and customer relationships. The transformation programme is an important enabler of this, creating a more eļ¬ective
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operating platform from which we can continue to develop and grow. Transformation programme launched We have launched a Group-wide transformation programme, focused initially on Finance and Procurement. We expect this to deliver at least Ā£5m of annualised beneļ¬ts, with the beneļ¬ts building through 2027. Transformation will continue to be an important part of how we strengthen LSL. Looking ahead, technology is likely to become an increasingly important focus as we consider how we can use it more eļ¬ectively to simplify processes, improve how we work and support our businesses. We make these changes from a position of strength: it is more than cost reduction. It is about creating a simpler, more eļ¬ective LSL, making better use of our scale and capabilities, creating new revenue opportunities and providing a stronger platform for future growth. Market performance Mortgage market The mortgage market showed recovery during the period and gross new mortgage lending1 increasing by 8% to Ā£145 billion, with total mortgage approvals2 increasing by approximately 5% year-on-year to 701,000. Purchase activity remained around 2% below its long-term average and purchase lending represented approximately 60% of total new lending, broadly consistent with the 10-year average. As expected, remortgaging was the principal driver of growth. Signiļ¬cant volumes of two- and ļ¬ve-year ļ¬xed- rate mortgages reached maturity, increasing remortgage and other approvals2 by 17%, with associated lending 29% ahead of H1 2025. Approximately 1.8 million ļ¬xed-rate products are expected to mature during 20268. Remortgaging represents around one-third of Group revenue, creating a signiļ¬cant and sustained opportunity across our Financial Services and Surveying & Valuation businesses. The adviser channel also remains structurally important, accounting for 85% of UK mortgage lendingĀ³. Housing market ā residential sales and lettings Conditions in the UK housing market were broadly in line with our expectations during H1 2026. Transactionsā“ reduced by 4% year-on-year to 552,000, primarily reļ¬ecting the acceleration of activity ahead of the Stamp Duty changes introduced on 1 April 2025. At the end of H1 2026, average house prices in England and Walesāµ were 2% higher year-on-year, although London lagged, with prices down 3%. Our exposure to London is limited, protecting us from this market. Lettings remained resilient following the ļ¬rst phase of the Rentersā Rights Act 2025. The changes have been successfully implemented across our network, with underlying landlord activity remaining stable. We have seen no evidence of the material landlord withdrawal anticipated by some industry commentators. UK private rentsā¶ increased by 4% in the six months to June 2026, based on provisional estimates. The additional regulatory and administrative requirements placed on landlords should increase demand for professional support, creating further opportunities for our estate agency franchisees to attract self-managing landlords and grow recurring revenues. Regulation has been supportive The regulatory backdrop has also developed positively for us. The FCA's interim ļ¬ndings on the distribution of pure protection products were broadly supportive of the market and identiļ¬ed a gap in protection coverage among its ļ¬ndings. The Renters' Rights Act has been successfully implemented across our network with underlying landlord activity remaining stable and the Government's roadmap for reform of the home buying and selling process is also well aligned with capabilities we have across LSL. More broadly, increasing regulation and complexity favour businesses with market presence and specialist expertise. These are established competencies within LSL and position us to beneļ¬t as professional standards rise. H1 2026 ļ¬nancial performance and operational activity Against this backdrop Group revenue increased by 3% to Ā£92.3m, once again demonstrating the quality of our underlying businesses and our market positions. This revenue performance, together with disciplined execution, converted into operating proļ¬t growth and margin expansion. We maintained our focus on costs with an 8% reduction in central costs and beneļ¬ts in the divisions, including prior year period restructurings.
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Cash generation remained high as the Group maintained its last 12-month cash conversion rate of 91% and record return on capital employed (ROCE) of 36%. This ļ¬nancial position provides us with the ļ¬exibility to invest for growth while continuing to return capital to shareholders. The interim dividend was maintained at 4.0p per share and Ā£4.8m was deployed through the ongoing Ā£12m share buyback programme. Alongside this ļ¬nancial performance, we have remained active across the Group: investing in our businesses, strengthening management and expertise, progressing the transformation programme and deploying capital selectively, while Pivotal Growth has continued to build market reach and value. PROGRESS ACROSS OUR BUSINESSES Surveying & Valuation Surveying & Valuation delivered another good performance, with revenue up 6%, Underlying Operating Proļ¬t7 up 11% and further margin progression. The performance beneļ¬ted from allocation wins, improved contract terms and cost eļ¬ciencies, alongside a positive performance from Asset Management. Our market position remains strong, underpinned by long-standing lender relationships and surveying market share of 36%. All contracts due for renewal during the period were successfully renewed. Our proprietary Automated Valuation Model (AVM) is performing well and discussions with a number of partners are progressing. Financial Services The Financial Services business delivered 8% growth in mortgage revenue during the ļ¬rst half, supported by high levels of demand in the remortgage market, with market share maintained or increased across our principal mortgage channels and a 12% increase in revenue per adviser. Revenue reduced by 3% and underlying operating proļ¬t reduced by Ā£0.9m, principally reļ¬ecting investment in the new CRM and lower adviser numbers, including the departure of protection-only ļ¬rms last year. We have refreshed management and restructured governance, and are focused on improving adviser productivity, product penetration and recruitment of new ļ¬rms. With around 8.9% of all UK mortgages ļ¬owing through our adviser network, we have genuine scale and reach and our priority is to translate that position into stronger growth and returns. We made a small regional acquisition after the period end which we expect will add around 50 advisers to the PRIMIS network. Estate Agency Franchising Very strong performance in the Estate Agency Franchising Division with Underlying Operating Proļ¬t increased 24% to Ā£3.9m and Underlying Operating margin increased to a record ļ¬rst half margin of 30%, supported by the beneļ¬ts of prior year restructuring. This demonstrates the attractive characteristics of our capital-light franchise model. We made investments to support our end-to-end conveyancing proposition to provide an enhanced service to our franchisees and to create propositions which can be monetised across the Group. We acquired a small six branch franchise network on the South Coast to extend our footprint, while seven lettings books acquisitions added around 1,380 properties under management and increased recurring income and were converted into six branches. We also invested selectively in our franchisee oļ¬ering, including conveyancing, that broaden the support and services we can provide to franchisees and their customers. Pivotal Growth Pivotal Growth, our joint venture with Pollen Street Capital, grew proļ¬tably and grew further during the period. Three further acquisitions were completed in 2026, taking the business to over 600 advisers and making it one of the UK's largest mortgage and protection brokers. Pivotal continues to execute its buy-and-build strategy, supported by its own external funding and a strong acquisition pipeline. As the business continues to scale and improve proļ¬tability, we believe it has the potential to represent a signiļ¬cant source of value for us. Disciplined capital allocation
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Our business model and high cash generation give us signiļ¬cant ļ¬exibility in how we allocate capital, and we remain focused on deploying it where we believe it can generate attractive returns for shareholders. During the ļ¬rst half, we invested for growth both organically and with small bolt-on acquisitions and investments. We deployed capital selectively to meet our return criteria. Our cash generation and disciplined capital allocation increased ROCE to 36% from 31%, well above historical levels of around 18%. Alongside investment for growth, we returned capital to shareholders. The interim dividend was maintained at 4.0p per share and Ā£4.8m was deployed through our ongoing Ā£12m share buyback programme as at 30 June 2026. After these investments and returns, cash was Ā£22.0m at the period end, providing ļ¬exibility to pursue further attractive growth opportunities. Our approach remains disciplined: investing organically, pursuing selective bolt-on acquisitions, maintaining an attractive dividend, using buybacks where appropriate and preserving balance-sheet strength. Ā Outlook The business continues to deliver ļ¬nancially, with strong cash generation and high returns. We have launched a transformation programme that will further improve the economics and capabilities of the Group. We have a very distinct position with our businesses providing services right across the UK residentialproperty and mortgage ecosystem. One LSL is about connecting our businesses more eļ¬ectively, makingbetter use of our relationships, expertise, data and technology across the Group. We have already started that journey. The transformation programme is part of it, but it is broader than that.It is about getting more value from the strengths we already have. Weāve delivered another good ļ¬rst half, we remain on track for the year, and we are continuing to improvethe quality and economics of the Group. We have strong businesses, a highly cash-generative model, and agrowing opportunity to create more value by bringing those strengths together. Adam Castleton Group Chief Executive Oļ¬cer 14 September 2026 Notes: 1 Ā Ā Ā Ā Ā Ā Ā Ā Ā New mortgage lending by purpose of loan, Bank of England Table A5.3 ā (29 July 2026). 2 Ā Ā Ā Ā Ā Ā Ā Ā Ā Approvals for lending secured on dwellings, Bank of England Table A5.4 (29 July 2026). 3 Ā Ā Ā Ā Ā Ā Ā Ā Ā New residential lending sold direct and via intermediaries, UK Finance Table RL8 (13 August 2026). 4 Ā Ā Ā Ā Ā Ā Ā Ā Ā Number of residential property transaction completions with value Ā£40,000 or above, HMRC (31 July 2026). 5 Ā Ā Ā Ā Ā Ā Ā Ā Ā House price index, England and Wales, LSL Acadata (July 2026). 6 Ā Ā Ā Ā Ā Ā Ā Ā Ā Index of Private Housing Rental Prices, UK, ONS (July 2026). 7 Ā Ā Ā Ā Ā Ā Ā Ā Ā Group (and Divisional) Underlying Operating Proļ¬t represents the Group's operating proļ¬t adjusted for share-based payments, amortisation of intangible assets, contingent consideration movements and exceptional items, and excludes all income and expenses arising from joint ventures, associates, and equity-accounted investments. Refer to note 5 to the Financial Statements for reconciliation of Group and Divisional Underlying Operating Proļ¬t to operating proļ¬t/(loss) for continuing operations. 8 Ā Ā Ā Ā Ā Ā Ā Ā Ā 2026 Mortgage market forecast, UK Finance (15 December 2025). Ā BUSINESS & FINANCIAL REVIEW Business review H1 P&L (Ā£m) 2026 2025 Var Divisional Group Revenue Surveying & Valuation 56.2 53.2 6% Financial Services 22.9 23.5 (3)% Estate Agency Franchising 13.2 13.0 2% Group Revenue 92.3 89.7 3% Divisional Underlying Operating Proļ¬t/(loss) 1 Surveying & Valuation 13.1 11.9 11% Financial Services3 3.4 4.3 (20)% Estate Agency Franchising 3.9 3.2 24% Central Costs (4.5) (5.0) 8% Group Underlying Operating Proļ¬t from continuing operations1,3 15.9 14.4 11%
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Divisional Operating Proļ¬t/(loss)2 Surveying & Valuation 12.3 11.6 7% Financial Services3 3.9 2.2 74% Estate Agency Franchising 3.1 2.7 15% Central Costs (6.8) (5.6) (23)% Group operating proļ¬t from continuing operations 12.5 10.9 14% Estate Agency - discontinued operations 0.4 (0.2) 300% Group Operating Proļ¬t from total operations 12.9 10.7 21% Notes: 1 Ā Ā Ā Ā Ā Ā Ā Ā Ā Group (and Divisional) Underlying Operating Proļ¬t represents the Group's operating proļ¬t adjusted for share-based payments, amortisation of intangible assets, contingent consideration movements and exceptional items, and excludes all income and expenses arising from joint ventures, associates, and equity-accounted investments. 2 Ā Ā Ā Ā Ā Ā Ā Ā Ā Following the conversion of the entire owned estate agency network to franchises in H1 2023, the previously owned network was classiļ¬ed as a discontinued operation and is now presented as such in the Financial Statements. Refer to note 6 to the Financial Statements Refer to note 5 to the Financial Statements for reconciliation of Group and Divisional Underlying Operating Proļ¬t to operating proļ¬t/(loss) for continuing operations 3 Ā Ā Ā Ā Ā Ā Ā Ā Ā Comparative restated due to revised deļ¬nition of Group Underlying Operating Proļ¬t. Refer to note 5 Financial Review Group Income Statement1 summary Group Revenue increased 3% to Ā£92.3m (H1 2025: Ā£89.7m). Surveying & Valuation delivered 6% revenue growth, supported by new volume wins and growth of our B2C and data income streams. In Financial Services, we increased market share slightly in both the purchase market (H1 2026: 12.7%, H1 2025: 12.6%) and the remortgage market (H1 2026: 8.9%, H1 2025: 8.7%) whilst also increasing our share of the product transfer market to 6.7% (H1 2025: 5.8%). Revenue in the Financial Services Division reduced by 3%, with mortgage income up 8% oļ¬set by lower protection and other income driven by a reduction in adviser numbers which includes the exit of protection-only ļ¬rms in 2025. Revenue in Estate Agency Franchise grew by 2% against a housing market that was 4% smaller and a broadly ļ¬at letting market. Group Underlying Operating Proļ¬t2 increased to Ā£15.9m (H1 20253: Ā£14.4m), with a year-on-year improvement in Surveying & Valuation, Estate Agency Franchising and Central costs, whilst the fall in Financial Services was a result of investment in the new adviser platform and lower adviser numbers, including the departure of protection-only ļ¬rms last year. Group Underlying Operating Margin increased to 17%, maintaining the highest margin for over 15 years. Group Operating Proļ¬t increased to Ā£12.5m (H1 2025: Ā£10.9m). Excluding net exceptional gains in the period of Ā£0.2m (H1 2025: Ā£1.8m costs) the movement has remained relatively ļ¬at. Employee costs increased by Ā£2.0m, with other operating costs increasing to Ā£19.5m (H1 2025: Ā£17.9m), although Central operating costs reduced by Ā£0.5m to Ā£4.5m following targeted savings in consultancy, professional and audit fees. These increases were partly oļ¬set by a Ā£1.5m reduction in the expected credit loss charge to Ā£0.5m. Exceptional items: exceptional gains totalled Ā£2.1m (H1 2025: Ā£nil), principally comprising a Ā£2.0m gain following the settlement with Tenet Groupās administrators of the post-acquisition support arrangements relating to TenetLime Limited. Exceptional costs were Ā£1.8m (H1 2025: Ā£1.8m), comprising Ā£1.2m of Group transformation costs, Ā£0.5m of costs associated with the Tenet Group administration and Ā£0.1m of acquisition-related costs. Taxation: the tax charge of Ā£3.7m (H1 2025: Ā Ā£2.9m) represents an eļ¬ective tax rate of 30.6% (H1 2025: 26.0%). The increase principally reļ¬ects the tax treatment of certain non-deductible items and movements in the expected tax beneļ¬ts associated with share-based payments. Dividend: the Board has declared an interim dividend of 4.0 pence per share (2025: 4.0 pence). The Groupās dividend policy continues to be a pay-out of 30% of Group Underlying Operating Proļ¬t after ļ¬nance and normalised tax charges4. The ex-dividend date for the interim dividend is 1 October 2026, with a record date of 2 October 2026 and a payment date of 6 November 2026. Shareholders can elect to reinvest their cash dividend and purchase additional shares in LSL through a dividend reinvestment plan. The election date is 16 October 2026. Share buyback: in January 2026, we completed our Ā£7.0m share buyback programme which was announced on 25 April 2024 and commenced a new share buyback programme in respect of our ordinary shares of 0.2
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pence each for up to a maximum consideration of Ā£12.0m from 27 January 2026. As of 30 June 2026, Ā£4.8m of the share buyback programme announced has been deployed and the Company remains on track to complete the programme by January 2027. Pivotal Growth joint venture: in 2026, we enhanced the presentation of the Groupās joint venture results, with its share of post-tax proļ¬t from joint venture now presented separately below Group operating proļ¬t. This provides clearer disclosure of the operating performance of the Groupās businesses in preparation for the adoption of IFRS 18 Presentation and Disclosure in Financial Statements. Transformation programme ļ¬nancial impact During the period, we launched a transformation programme to simplify our operating model and further leverage our scale. This will focus on creating leaner and more eļ¬cient support functions across the Group and is anticipated to continue through 2026 and 2027, with beneļ¬ts being delivered as the implementation progresses. Achieving the cost eļ¬ciencies we have identiļ¬ed will incur exceptional costs of circa Ā£4m, predominantly people-related cash costs across 2026 and 2027. Group Statement of Cash Flows summary Cash generation: the Group maintains a healthy cash balance at Ā£22.0m at 30 June 2026, in line with theprior period. Net cash generated from operating activities increased by Ā£1.7m to Ā£4.5m (H1 2025: Ā£2.8m),reļ¬ecting a Ā£1.3m increase in proļ¬t before tax. Cash generation was supplemented by the Ā£10.7mrepayment of Pivotal Growth loan notes, received in January 2026. The Group invested Ā£9.1m in acquisitions and capital expenditure, including settlement of the deferredconsideration relating to the 2024 TenetLime Limited acquisition and support franchisees for lettings books.The Group absorbed normal seasonal working-capital movements and c.Ā£1.2m exceptional cash costsrelating to the transformation programme, whilst returning over Ā£12m to shareholders through dividendsand share buybacks. The balance sheet remains in good shape, providing ļ¬exibility to invest selectively ingrowth while continuing to deliver attractive shareholder returns. Group Balance Sheet summary Robust balance sheet: the Group retains a healthy balance sheet with good liquidity. In addition to cashbalances of Ā£22.0m, the bank facility of Ā£60m remains unutilised. The capital-light model of franchising leadsto high and increasing Group ROCE of 36% over the last 12 months, up from 31%. Key assets Loans to joint venture: The Group previously provided funding of Ā£13.8m to its joint venture in the form of10% unsecured loan notes. In January 2026, Mottram Topco Limited repaid Ā£10.7m out of the Ā£13.8m loannotes outstanding in cash.Ā The remaining Ā£3.2m was converted to ordinary shares in Mottram TopcoLimited, representing an increase in the investment balance in the joint venture. Loans to franchisees and appointed representatives (Network ļ¬rms): This total balance increased fromĀ£3.7m to Ā£5.7m in the period. The Group provides loans to franchisees and appointed representatives as partof its normal commercial arrangements. During the period, aggregate cash advances under thesearrangements were Ā£3.6m (H1 2025: Ā£1.9m). Principal repayments received during the period were Ā£1.2m(H1 2025: Ā£0.6m). Key liabilities Financial liabilities: Current and non-current ļ¬nancial liabilities decreased to Ā£6.5m (31 December 2025:Ā£9.8m). Contingent consideration liabilities reduced to Ā£0.8m from Ā£3.3m following settlement of theTenetLime contingent consideration. The closing contingent consideration liability principally relates to theacquisition of NSS Franchising Ltd, with a smaller amount relating to the acquisition of Meyers FranchisingLimited. Provision for liabilities: Provisions were broadly stable at Ā£11.5m (31 December 2025: Ā£11.3m). Professionalindemnity claim provisions increased slightly from Ā£4.3m to Ā£4.5m, while dilapidation and restructuringprovisions reduced by Ā£0.5m to Ā£4.9m as the remaining obligations associated with the 2023 Estate Agencyfranchising programme unwound. Notes: 1 Ā Ā Ā Ā Ā Ā Ā Ā Ā Based on continuing operations unless otherwise stated. Following the conversion of the entire owned Estate Agency network to franchisees in H1 2023, this was classiļ¬ed as a discontinued operation and is now presented as such in the Financial Statements. Refer to note 6 to the Financial Statements 2 Ā Ā Ā Ā Ā Ā Ā Ā Ā Group (and Divisional) Underlying Operating Proļ¬t represents the Group's operating proļ¬t adjusted for share-based payments, amortisation of intangible assets, contingent consideration movements and exceptional items, and excludes all income and expenses arising from joint ventures, associates, and equity-accounted investments. Refer to note 5 to the Financial Statements for reconciliation of Group and Divisional Underlying Operating Proļ¬t to operating proļ¬t/(loss) for continuing operations 3 Ā Ā Ā Ā Ā Ā Ā Ā Ā Comparative restated due to revised deļ¬nition of Group Underlying Operating Proļ¬t. Refer to note 5 4 Ā Ā Ā Ā Ā Ā Ā Ā Ā Refer to note 5 Principal risks and uncertainties
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The principal risks and uncertainties relating to the Group's operations are disclosed on pages 28 to 30 of theGroup's Annual Report and Accounts 2025 (which can be accessed on the Group's website: www.lslps.co.uk).Having considered the principal risks and uncertainties, applicable for the six months ended 30 June 2026,the Board has concluded that these remain the same as those included within the Annual Report andAccounts 2025. Directorsā responsibility statement Each of the Directors (as listed below) conļ¬rms that to the best of their knowledge: The Interim Condensed Consolidated Group Financial Statements for the period ended 30 June 2026 have been prepared in accordance with IAS 34 'Interim Financial Reporting'. The interim management report includes a fair view of the information required by the Disclosure and Transparency Rules sections 4.2.7R and 4.2.8R, namely: (a) an indication of important events that have occurred during the ļ¬rst six months of the ļ¬nancialyear and their impact on the condensed set of ļ¬nancial statements; (b) a description of the principal risks and uncertainties for the remaining six months of the ļ¬nancialyear; (c)Ā details of related-party transactions that have taken place in the ļ¬rst six months of the currentļ¬nancial year and that have materially aļ¬ected the ļ¬nancial position or performance of the companyduring that period; and (d) any changes in the related-party transactions described in the last annual report that could have amaterial eļ¬ect on the ļ¬nancial position or performance in the period. By order of the Board of Directors Adam CastletonĀ Ā Ā Ā Ā Ā Ā David Tilak Group Chief Executive Oļ¬cerĀ Ā Ā Ā Ā Ā Ā Group Chief Financial Oļ¬cer 14 September 2026Ā Ā Ā Ā Ā Ā 14 September 2026 Board of Directors Adrian Collins Gabrielle Appleton Adam Castleton David Tilak Darrell Evans Sonya Ghobrial James Mack Michael Stoop Interim Group Income Statement for the six months ended 30 June 2026Ā Ā UnauditedĀ Six months ended 30 June2026 Ā Ā Ā Ā Ā Ā Ā Ā Restated1 30 June2025 Continuing operations: Note Ā£'000 Ā£'000 Revenue 4 92,308 89,671 Operating expenses: Employee costs Ā (55,652) (53,680) Expected credit loss charge2 Ā (527) (2,070) Depreciation on property, plant and equipment and right-of-use assets Ā (1,704) (1,642) Other operating costs1,2 Ā (19,462) (17,906) Other income Ā 979 - Share-based payments Ā (2,028) (152) Amortisation of intangible assets 10 (1,622) (1,527) Exceptional costs 7 (1,831) (1,753)
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Exceptional gains 7 2,050 - Group operating proļ¬t1 Ā 12,511 10,941 Share of post-tax proļ¬t from joint venture1 15 134 89 Finance income Ā 941 1,160 Finance costs Ā (1,514) (890) Net ļ¬nance (cost)/income Ā (573) 270 Ā Ā Ā Ā Proļ¬t before tax from continuing operationsĀ Ā 12,072 11,300 Taxation charge 9 (3,698) (2,936) Proļ¬t for the period from continuing operations Ā 8,374 8,364 Discontinued operations Gains/(losses) for period from discontinued operationsĀ 6 266 (121) Proļ¬t for the period Ā 8,640 8,243 Attributable to: Owners of the parent Ā 8,609 8,186 Non-controlling interest Ā 31 57 Ā Ā 8,640 8,243 Earnings per share from total operations (expressed as pence per share): Basic Ā 8.6 8.0 Diluted Ā 8.5 7.9 Earnings per share from continuing operations (expressed as pence per share): Basic Ā 8.4 8.1 Diluted Ā 8.2 8.0 1Following a review of the Groupās performance measures, share of post-tax proļ¬t from joint venture is now presented below operating proļ¬t. Comparative restated. Refer to note 5 for further detail. 2 Comparative restated to present expected credit loss charge separately from other operating costs. Interim Group Statement of Comprehensive Income There was no other comprehensive income during the six months ended 30 June 2026 (six months ended 30 June 2025: Ā£nil).Interim Group Balance Sheet as at 30 June 2026 Ā Ā UnauditedĀ Audited Ā Ā 30 June2026 31 December 2025 Ā Note Ā£'000 Ā£'000 Non-current assets Goodwill 10 19,050 16,855 Other intangible assets 10 30,552 29,881 Property, plant and equipment and right-of-use assets Ā 6,704 7,700 Financial assets 11 1,613 963 Investment in sublease 11 82 131 Investment in joint venture 15 18,301 14,988 Loans to franchisees and appointed representatives 11 3,818 1,823 Total non-current assets Ā 80,120 72,341 Current assets Trade and other receivables Ā 27,406 25,026 Loans to joint venture 11 - 13,840 Investment in sublease 11 74 164 Current tax asset Ā 1,096 725 Loans to franchisees and appointed representatives 11 1,895 1,827 Cash and cash equivalents 12 53,923 67,050 Total current assets Ā 84,394 108,632 Total assets Ā 164,514 180,973 Current liabilities Financial liabilities 13 (2,776) (5,613) Trade and other payables Ā (31,685) (36,810) Bank overdrafts 12 (31,938) (39,253) Provisions for liabilities 14 (5,383) (6,266)
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Total current liabilities Ā (71,782) (87,942) Non-current liabilities Financial liabilities 13 (3,677) (4,148) Deferred tax liability Ā (2,638) (1,999) Provisions for liabilities 14 (6,090) (5,002) Total non-current liabilities Ā (12,405) (11,149) Total liabilities Ā (84,187) (99,091) Net assets Ā 80,327 81,882 Equity Share capital Ā 210 210 Share premium account Ā 5,629 5,629 Share-based payment reserve Ā 5,147 3,355 Shares held by employee beneļ¬t trust and share incentive plan Ā (1,112) (1,316) Treasury shares Ā (14,668) (9,876) Fair value reserve Ā (385) (385) Retained earnings Ā 85,668 84,458 Equity attributable to the owners of the parent Ā 80,489 82,075 Non-controlling interest Ā (162) (193) Total equity Ā 80,327 81,882 Interim Group Statement of Cash Flows for the six months ended 30 June 2026 Ā Ā UnauditedĀ Ā Six Months Ended Ā Note 30 June2026 Restated1 30 JuneĀ 2025Proļ¬t before tax from continuing operations Ā 12,072 11,300 Proļ¬t/(loss) before tax from discontinued operations Ā 356 (151) Proļ¬t before tax Ā 12,428 11,149Adjustments for: Ā Ā Ā Exceptional costs 7 1,831 1,923Exceptional gains 6,7 (2,404) -Depreciation of tangible assets Ā 1,704 1,642Amortisation of intangible assets 10 1,622 1,527Share-based payments Ā 2,028 152 Proļ¬t on disposal of ļ¬xed assets (other income) Ā (319) -Share of post-tax proļ¬t from joint venture Ā (134) (89)R&D expenditure credit (other income) Ā (660) - Finance income Ā (941) (1,160)Finance costs Ā 1,514 890 Expected credit loss charge1 Ā 527 2,070 Operating cash ļ¬ows before interest, tax, exceptional items and movements inworking capital Ā 17,196 18,104Ā Movements in working capital Increase in trade and other receivables1 Ā (2,368) (6,016)Decrease in trade and other payables Ā (5,641) (4,608) Increase in provisions Ā 859 1,067 Ā Ā (7,150) (9,557) Cash generated from operations before interest, tax and exceptional items Ā 10,046 8,547Interest paid (leases) Ā (258) (244) Interest received (leases) Ā 5 21Income taxes paid Ā (3,364) (3,142)Exceptional costs paid Ā (1,890) (2,392) Net cash generated from operating activities Ā 4,539 2,790 Cash ļ¬ows used in investing activities Interest received Ā 503 778Payment of contingent consideration 13 (3,330) -Receipt from settlement 7 1,830 -Receipt of contingent consideration Ā - 58Franchisees and appointed representatives loans granted 11 (3,634) (1,855)Franchisees and appointed representatives loan repayments 11 1,187 612Receipt of lease income Ā 95 280Purchase of property, plant and equipment Ā (298) (921)
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Purchase of intangible assets Ā (1,218) (1,610) Acquisition of subsidiaries (net of cash acquired) 18 (1,866) - Investment in ļ¬nancial asset 11 (650) - Repayment of loan notes from joint venture 11 10,683 - Net cash generated/(expended) on investing activities Ā 3,302 (2,658) Ā Ā Ā Ā Cash ļ¬ows used in ļ¬nancing activities Ā Ā Ā Repurchase of treasury shares Ā (4,792) (1,356)Proceeds from the exercise of share options Ā 4 174Reļ¬nance costs Ā - (540)Commitment and non-utilisation fees on RCF Ā (239) -Payment of lease liabilities Ā (1,213) (1,215)Dividends paid Ā (7,413) (7,638) Net cash expended in ļ¬nancing activities Ā (13,653) (10,575) Ā Ā Ā Ā Net decrease in cash and cash equivalents Ā (5,812) (10,443) Cash and cash equivalents at the beginning of the period Ā 27,797 32,399 Cash and cash equivalents at the end of the period 12 21,985 21,956 Cash and cash equivalents are net of bank overdrafts, see note 12. 1 Comparative ļ¬gure for the expected credit loss charge was reclassiļ¬ed from trade and other receivables
Page 15
Interim Group Statement of Changes in Equity Unaudited ā for the six months ended 30 June 2026 Share capital Share premium account Share- based payment reserve Shares held by employee beneļ¬t trust and share incentive plan Ā Treasuryshares Fair value reserve Retained earnings Equity attributable to owners of the parent Non- controlling interest Total Ā Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 At 1 January 2026 210 5,629 3,355 (1,316) (9,876) (385) 84,458 82,075 (193) 81,882 Proļ¬t for the period - - - - - - 8,609 8,609 31 8,640 Total comprehensive income for the period - - - - - - 8,609 8,609 31 8,640 Exercise of options - - (101) 204 - - (99) 4 - 4 Vested share options lapsed during the period - - (113) - - - 113 - - - Dividend paid - - - - - - (7,413) (7,413) - (7,413) Share-based payments - - 2,043 - - - - 2,043 - 2,043 Tax on share- based payments - - (37) - - - - (37) - (37) Shares repurchased into treasury - - - - (4,792) - - (4,792) - (4,792) Transactions with owners - - 1,792 204 (4,792) - (7,399) (10,195) - (10,195) At 30 June 2026 210 5,629 5,147 (1,112)(14,668) (385) 85,668 80,489 (162) 80,327 During the six-month period to 30 June 2026 a total of 64,808 share options were exercised relating to LSLās various share optionschemes resulting in the shares being sold by the Trust. LSL received Ā£0.0m on exercise of these options. During the six-month period to 30 June 2026, LSL had repurchased 2,013,935 LSL shares at an average cost of Ā£2.38 per share. Interim Group Statement of Changes in Equity Unaudited ā for the six months ended 30 June 2025 Share capital Share premium account Share- based payment reserve Shares held by employee beneļ¬t trust and share incentive plan Ā Treasuryshares Fair value reserve Retained earnings Equity attributable to owners of the parent Non- controlling interest Total Ā Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 At 1 January 2025 210 5,629 2,634 (1,510) (4,831) (385) 80,417 82,164 (280) 81,884 Proļ¬t for the period - - - - - - 8,186 8,186 57 8,243 Total comprehensive income for the period - - - - - - 8,186 8,186 57 8,243 Exercise of options - - (140) 115 - - 201 176 - 176 Vested share options lapsed during the period - - (96) - - - 96 - - -
Page 16
Dividend paid - - - - - - (7,638) (7,638) - (7,638) Share-based payments - - 152 - - - - 152 - 152 Tax on share- based payments - - 19 - - - - 19 - 19 Shares repurchased into treasury - - - - (1,356) - - (1,356) - (1,356) Transactions with owners - - (65) 115 (1,356) - (7,341) (8,647) - (8,647) At 30 June 2025 210 5,629 2,569 (1,395) (6,187) (385) 81,262 81,703 (223) 81,480 During the six-month period to 30 June 2025 a total of 53,052 share options were exercised relating to LSLās various share optionschemes resulting in the shares being sold by the Trust. LSL received Ā£0.2m on exercise of these options. During the six-month period to 30 June 2025, LSL had repurchased 479,828 LSL shares at an average cost of Ā£2.82 per share.
Page 18
Notes to the Interim Condensed Consolidated Group Financial Statements 1. Basis of preparation The Interim Condensed Consolidated Group Financial Statements for the period ended 30 June 2026 were approved by the LSL Board on 14 September 2026. LSL Property Services plc ('the Company' or 'LSL') is a public limited company incorporated and domiciled in England, United Kingdom. LSL and its subsidiaries (together the āGroupā) operate Financial Services, Surveying & Valuation and Estate Agency Franchising businesses. Its registered address is First Floor, Victoria House Hampshire Court, East Newcastle Business Park, Scotswood Road, Newcastle Upon Tyne, England, NE4 7YJ. These condensed interim ļ¬nancial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.Ā The ļ¬nancial information for the year ended 31 December 2025 is extracted from the audited statutory accounts for the year ended 31 December 2025, which were approved by the Board of Directors on 18 March 2026 and have been ļ¬led with the Registrar of Companies. The auditorās report on those 2025 full year statutory accounts was unqualiļ¬ed and did not contain an emphasis of matter paragraph and did not make a statement under section 498 (2) or (3) of the Companies Act 2006. These Interim Condensed Consolidated Group Financial Statements have been reviewed, not audited. The Interim Condensed Consolidated Group Financial Statements for the period ended 30 June 2026 have been prepared in accordance with UK adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdomās Financial Conduct Authority, and should be read in conjunction with the Groupās annual Financial Statements as at 31 December 2025 which are included in LSLās Annual Report and Accounts 2025. The Groupās annual Financial Statements for the year ending 31 December 2026 will be prepared in accordance with UK adopted International Accounting Standards. The Interim Condensed Consolidated Group Financial Statements do not include all the information and disclosures required for a complete set of IFRS Financial Statements. However, selected explanatory notes are included to explain events and transactions that are signiļ¬cant to an understanding of the changes in the Groupās ļ¬nancial position and performance since the last annual Financial Statements. Ā Going Concern The UK Corporate Governance Code and IAS 1, Presentation of ļ¬nancial statements, require the Board to assess and report on the prospects of the Group and whether the business is a Going Concern. In considering this requirement, the Directors have taken into account the Groupās forecast cash ļ¬ows, liquidity, borrowing facilities and related covenant requirements and the expected operational activities of the Group. The Group expects to continue to meet its day-to-day working capital requirements through cashļ¬ows generated by its trading activities and available cash resources (30 June 2026: Ā£22.0m). The Group's banking facility, a Ā£60 million committed revolving credit facility has a maturity date of January 2030. The Group have not currently utilised the facility leaving Ā£60 million of available undrawn committed borrowing facilities in respect of which all conditions precedent had been met. The facility agreement contains ļ¬nancial covenants, including minimum net debt to EBITDA ratio, which mean that, under downside scenarios, the full facility would not be available in the going concern period. The Directors have continued to run a variety of scenario models throughout the year to help the ongoing assessment of risks and opportunities covering the period to 31 December 2027 ("the going concern period"). The Directors considered the period to December 2027, which exceeds the minimum required period, because it captures the covenant test that could signiļ¬cantly aļ¬ect the use of the going concern basis. In the scenarios, the Directors considered both current trading and external industry data. In developing a base case forecast the Directors have assumed inļ¬ation and interest rates of 3.00% and 4.25%, respectively, by the end of 2026 and 3.0% and 4.25%, respectively, for 2027. The Directors have performed a reverse stress test to determine the events and circumstances which would need to arise in order to threaten the Group's ability to continue as a going concern. Such scenarios would require a signiļ¬cant reduction in market transaction volumes below the low point experienced during the Global Financial Crisis and in turn reduce Group revenue by approximately 40% compared to current performance. Under such a scenario, all available cash balances would be utilised, and the facility would be unavailable due to ļ¬nancial covenants. If severe downside scenarios arose, there are cost mitigations that could be applied, as well as cash conservation action such as pausing dividend payments and planned investments. The Directors have concluded that the likelihood of such a severe scenario arising is remote and have concluded that there are no material uncertainties to the Group's ability to continue through the going concern period. Therefore, the ļ¬nancial information has been prepared under the going concern basis of preparation. Having due regard to the scenarios above and after making appropriate enquiries, the Directors have a reasonable expectation withno material uncertainties that the Group have adequate resources to remain in operation to 31 December 2027. The Board havetherefore continued to adopt the going concern basis in preparing the Interim Condensed consolidated Financial Statements. 2. Signiļ¬cant accounting policy information There are no accounting pronouncements which have become eļ¬ective from 1 January 2026 that have a signiļ¬cant impact on the Interim Condensed Consolidated Group Financial Statements.Ā The accounting policies adopted in the preparation of the Interim Condensed Consolidated Group Financial Statements are consistent with those followed in the preparation of the Groupās Financial Statements for the year ended 31 December 2025, apart from the following: Alternative Performance Measures (APMs) During the period, Management reviewed the Groupās Alternative Performance Measure (āAPMā) framework to ensure that it continues to provide clear, balanced and decision-useful information and reļ¬ects the Groupās current operating model. Following this review, the Group has revised the deļ¬nition of Group Underlying Operating Proļ¬t (āGUOPā) and has ceased presenting Adjusted Operating Expenditure and Net Cash/(Debt) as formal APMs. These changes reduce the number of formal APMs reported by the Group.
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With eļ¬ect from 1 January 2026, GUOP will reļ¬ect the underlying operating performance of businesses controlled and managed by the Group and excludes all income and expenses arising from joint ventures, associates, and equity-accounted investments. Under the new deļ¬nition, GUOP is the Group's operating proļ¬t adjusted for share-based payments, amortisation of intangible assets, contingent consideration movements and exceptional items, and excludes all income and expenses arising from joint ventures, associates, and equity-accounted investments. Comparative APM information aļ¬ected by the revised deļ¬nition has been restated on a consistent basis, see note 5. Ā Forward-Looking Statements This announcement contains certain statements that are forward-looking. They appear in a number of places throughout thisannouncement and include statements regarding our intentions, beliefs or current expectations and those of our oļ¬cers, Directorsand employees concerning, amongst other things, our results of operations, ļ¬nancial condition, liquidity, prospects, growth,strategies and the business we operate. By their nature, these statements involve uncertainty since future events and circumstancescan cause results and developments to diļ¬er materially from those anticipated. The forward-looking statements reļ¬ect knowledgeand information available at the date of preparation of this update and, unless otherwise required by applicable law, LSL undertakesno obligation to update or revise these forward-looking statements. Nothing in this update should be construed as a proļ¬t forecast.LSL and its Directors accept no liability to third parties in respect of this update save as would arise under English law. Any forward-looking statements in this update speak only at the date of this document and LSL undertakes no obligation to update publicly or review any forward-looking statement to reļ¬ect new information or events, circumstances or developments after the date of this document. 3. Judgements and estimates In preparing these Condensed Consolidated Interim Financial Statements, the signiļ¬cant judgements made by management in applying the Groupās accounting policies and the key sources of estimation uncertainty were the same as those that applied to the Group Financial Statements for the year ended 31 December 2025. 4. Segment analysis of revenue and operating proļ¬t For the six months ended 30 June 2026 LSL has reported three operating segments: Financial Services; Surveying & Valuation; and Estate Agency Franchising. The Chief Operating Decision Maker (āCODMā) being the Board, monitors the operating results of its segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating proļ¬t or loss which in certain respects, as explained in the table below, is measured diļ¬erently from operating proļ¬t or loss in the Group Financial Statements. Head oļ¬ce costs, Group ļ¬nancing (included in ļ¬nance costs and ļ¬nance income) and income taxes are managed on a Group basis and are not allocated to operating segments. Within the Estate Agency Franchising operating segment, the only remaining non-franchised operations relate to the Groupās new build residential sales and conveyancing packaging businesses which are LSL Land & New Homes Ltd and Homefast Property Services Limited, representing less than 10% of the Groupās total revenue. The Groupās asset management business is included within the Surveying & Valuation Division. Operating segments Ā The following tables present revenue followed by proļ¬t information regarding the Groupās operating segments for the six monthsended 30 June 2026 and for the six months ended 30 June 2025. a) Revenue and operating proļ¬t by segment Unaudited - Six months ended 30 June 2026 Income statement information Financial Services Ā£ā000 Surveying & Valuation Ā£ā000 Estate Agency Franchising Ā£ā000 Central Ā£ā000 Total Ā£ā000 Total revenue from external customers 22,841 56,228 13,239 - 92,308 Segmental result: Underlying operating proļ¬t/(loss) 3,419 13,141 3,931 (4,549) 15,942 Operating proļ¬t / (loss) 3,964 12,327 3,068 (6,848) 12,511 Share of post-tax proļ¬t from joint venture Ā Ā Ā Ā 134 Finance income Ā Ā Ā Ā 941 Finance costs Ā Ā Ā Ā (1,514) Proļ¬t before tax Ā Ā Ā Ā 12,072 Proļ¬t before tax from discontinued operations Ā Ā Ā Ā 356 Taxation Ā Ā Ā Ā Ā (3,788) Proļ¬t for the period Ā Ā Ā Ā 8,640 Group Underlying Operating Proļ¬t is as deļ¬ned in note 5 to these Consolidated Condensed Financial Statements.
Page 20
Financial Services Surveying & Valuation Estate AgencyFranchising Central TotalBalance sheet information Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Segment assets ā intangible 16,522 14,715 18,365 - 49,602 Segment assets ā other 25,492 19,605 13,703 56,112 114,912 Total Segment assets 42,014 34,320 32,068 56,112 164,514 Total Segment liabilities (15,768) (19,340) (13,014) (36,065) (84,187) Net assets 26,246 14,980 19,054 20,047 80,327 The Groupās interests in joint ventures are reported within the Financial Services segment. This classiļ¬cation reļ¬ects how the CODM monitors the joint ventureās operating results for the purposes of resource allocation. Central net assets comprise property, plant and equipment Ā£0.4m, cash Ā£53.9m, other assets Ā£1.8m, accruals and other payables of Ā£4.1m, overdraft of Ā£31.9m. Central result comprises costs relating to the Parent Company. Unaudited - Six months ended 30 June 2025 (restated)1 Income statement information Financial Services Ā£ā000 Surveying & Valuation Ā£ā000 Estate Agency Franchising Ā£ā000 Central Ā£ā000 Total Ā£ā000 Total revenue from external customers 23,490 53,151 13,030 - 89,671 Segmental result: Underlying operating proļ¬t/(loss)1 4,295 11,875 3,169 (4,966) 14,373 Operating proļ¬t / (loss)2 2,280 11,566 2,679 (5,584) 10,941 Share of post-tax proļ¬t from joint venture2 Ā Ā Ā Ā 89 Finance income Ā Ā Ā Ā 1,160 Finance costs Ā Ā Ā Ā (890) Proļ¬t before tax Ā Ā Ā Ā 11,300 Loss before tax from discontinued operations Ā Ā Ā Ā (151) Taxation Ā Ā Ā Ā (2,906) Proļ¬t for the period Ā Ā Ā Ā 8,243 1 Restated due to revised deļ¬nition of Group Underlying Operating Proļ¬t. 2Following a review of the Groupās performance measures, share of post-tax proļ¬t from joint venture is now presented below operating proļ¬t. Comparative restated. Refer to note 5 for further detail. Ā Group Underlying Operating Proļ¬t is as deļ¬ned in note 5 to these Consolidated Condensed Financial Statements. Financial Services Surveying & Valuation Estate AgencyFranchising Central TotalBalance sheet information Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Segment assets ā intangible 17,215 13,550 16,035 - 46,800 Segment assets ā other 35,219 17,585 11,953 51,586 116,343 Total Segment assets 52,434 31,135 27,988 51,586 163,143 Total Segment liabilities (20,751) (18,214) (13,593) (29,105) (81,663) Net assets 31,683 12,921 14,395 22,481 81,480 The Groupās interests in joint ventures are reported within the Financial Services segment. This classiļ¬cation reļ¬ects how the CODM monitors the joint ventureās operating results for the purposes of resource allocation and performance evaluation. Central net assets comprise PPE Ā£0.5m, cash Ā£49.0m, other assets Ā£2.1m, accruals and other payables of Ā£2.1m, overdraft of Ā£27.0m. Central result comprises costs relating to the Parent Company.
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Revenue Split by Stream - Unaudited - Six Months ended 30 June 2026 Ā Financial Services Ā£ā000 Surveying & Valuation Ā Ā£ā000 Residential sales exchange Ā£ā000 Estate Agency Franchising income Ā£ā000 Asset Management Ā£ā000 Conveyancing Ā£ā000 Total Ā Ā£ā000 Timing of revenue recognition Services transferred at a point in time 22,841 52,103 1,247 3,101 3,721 1,697 84,710 Services transferred over time - 404 - 7,194 - - 7,598 Total revenue from contracts with customers 22,841 52,507 1,247 10,295 3,721 1,697 92,308 Revenue Split by Stream - Unaudited - Six Months ended 30 June 2025 Ā Financial Services Ā£ā000 Surveying & Valuation Ā Ā£ā000 Residential sales exchange Ā£ā000 Estate Agency Franchising income Ā£ā000 Asset Management Ā£ā000 Conveyancing Ā£ā000 Total Ā Ā£ā000 Timing of revenue recognition Services transferred at a point in time 23,490 50,565 1,604 3,464 2,587 661 82,371 Services transferred over time - - - 7,300 - - 7,300 Total revenue from contracts with customers 23,490 50,565 1,604 10,764 2,587 661 89,671 b) Disaggregation of revenue from contracts with customers: Unaudited - Six months ended 30 June 2026 Unaudited - Six months ended 30 June 2025 (restated) 1The above note to the Interim Condensed Consolidated Group Financial Statements has been restated for the prior year period to reļ¬ect the classiļ¬cation of revenue generated by the Group into the correct category of Services transferred at a point in time and Services transferred over time in line with IFRS 15 requirements. The reclassiļ¬cation had no eļ¬ect on total revenue, operating proļ¬t or net assets. 5. Alternative performance measures (APMs) In reporting ļ¬nancial information, the Group presents APMs which are not deļ¬ned or speciļ¬ed under the requirements of IFRS. The Group believes that the presentation of APMs provides stakeholders with additional helpful information on the performance of the business but does not consider them to be a substitute for or superior to IFRS measures. During the period, Management reviewed the Groupās APM framework to ensure that it continues to provide clear, balanced and decision-useful information and reļ¬ects the Groupās current operating model. Following this review, the Group has revised the deļ¬nition of Group Underlying Operating Proļ¬t (āGUOPā) and has ceased presenting Adjusted Operating Expenditure and Net Cash/(Debt) as formal APMs. These changes reduce the number of formal APMs reported by the Group. With eļ¬ect from 1 January 2026, GUOP will reļ¬ect the underlying operating performance of businesses controlled and managed by the Group and excludes all income and expenses arising from joint ventures, associates, and equity-accounted investments. Under the new deļ¬nition, GUOP is the Group's operating proļ¬t adjusted for share-based payments, amortisation of intangible assets, contingent consideration movements and exceptional items, and excludes all income and expenses arising from joint ventures, associates, and equity-accounted investments. Comparative APM information aļ¬ected by the revised deļ¬nition has been restated on a consistent basis. Deļ¬nitions and reconciliations of the ļ¬nancial APMs used to IFRS measures, are included below. The Group reports the following APMs:
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a) Ā Ā Ā Ā Ā Ā Ā Group and Divisional Underlying Operating Proļ¬t/(Loss) Underlying Operating Proļ¬t/(Loss) represents the Group's operating proļ¬t adjusted for share-based payments, amortisation of intangible assets, contingent consideration movements and exceptional items, and excludes all income and expenses arising from joint ventures, associates, and equity-accounted investments. Period ended 30 June 2026 Financial Services Surveying & Valuation Estate Agency FranchisingĀ Central IFRS reported total from continuing operations Ā Ā£ā000Ā Ā£ā000Ā Ā£ā000Ā Ā£ā000Ā Ā£ā000 Proļ¬t/(loss) before taxĀ 4,245 12,298 2,554 (7,025) 12,072 Net ļ¬nance (income)/costĀ (147) 29 514 177 573 Share of post-tax proļ¬t from Joint Venture (134) - - - (134) Operating proļ¬t/(loss) per income statementĀ 3,964 12,327 3,068 (6,848) 12,511 marginĀ 17.4% 21.9% 23.2% - 13.6% Adjustments: Share-based paymentsĀ 290 420 365 953 2,028 Amortisation of intangible assetsĀ 709 394 519 - 1,622 Exceptional gainsĀ (note 7) (2,029) - (21) - (2,050) Exceptional costsĀ (note 7) 485 - - 1,346 1,831 Underlying operating proļ¬t/(loss)Ā 3,419 13,141 3,931 (4,549) 15,942 Underlying Operating MarginĀ 15.0% 23.4% 29.7% - 17.3% Period ended 30 June 2025 (restated)1 Financial Services Surveying & Valuation Estate Agency FranchisingĀ Central IFRS reported total from continuing operations Ā Ā£ā000Ā Ā£ā000Ā Ā£ā000Ā Ā£ā000Ā Ā£ā000 Proļ¬t/(loss) before taxĀ 3,194 11,908 2,590 (6,392) 11,300 Net ļ¬nance (income)/costĀ (825) (342) 89 808 (270) Share of post-tax proļ¬t from joint venture2 (89) - - - (89) Operating proļ¬t/(loss) per income statement2Ā 2,280 11,566 2,679 (5,584) 10,941 Operating MarginĀ 9.7% 21.8% 20.6% - 12.2% Adjustments: Share-based paymentsĀ 5 146 64 (63) 152 Amortisation of intangible assetsĀ 938 163 426 - 1,527 Exceptional costsĀ (note 7) 1,072 - - 681 1,753 Underlying Operating proļ¬t/(loss)Ā 4,295 11,875 3,169 (4,966) 14,373 Underlying Operating MarginĀ 18.3% 22.3% 24.3% - 16.0% 1 Restated due to revised deļ¬nition of Group Underlying Operating Proļ¬t. 2Following a review of the Groupās performance measures, share of post-tax proļ¬t from joint venture is now presented below operating proļ¬t. Comparative restated. Refer to note 5 for further detail. b) Ā Ā Ā Ā Ā Ā Ā Group and Divisional Underlying Operating Margin Underlying Operating Margin is deļ¬ned as Underlying Operating Proļ¬t divided by revenue. Refer to above for the calculation of both Group and Divisional Underlying Operating Margin. The closest equivalent IFRS measure to Underlying
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30 June 2026 30 June 2025 Ā Ā£ā000 Ā£ā000 Net cash generated from operating activities 4,539 2,790 Exceptional costs paid 1,890 2,392 Income taxes paid 3,364 3,142 Interest received (leases) (5) (21) Interest paid (leases) 258 244 Cash generated from operations 10,046 8,547 Payment of principal portion of lease liabilities (1,213) (1,215) PI provision utilisation 325 31 Adjusted cash ļ¬ow from operations 9,158 7,363 Operating Margin is operating margin, refer to above for a reconciliation between operating margin and Group Underlying Operating Margin. c) Ā Ā Ā Ā Ā Ā Ā Adjusted basic earnings per share, adjusted diluted earnings per share and adjusted proļ¬t after tax Adjusted basic earnings per share is deļ¬ned as Group Underlying Operating proļ¬t/(loss) adjusted for proļ¬t/(loss) attributed to non-controlling interests, net ļ¬nance costs (excluding exceptional and contingent consideration items, discounting on leases) less normalised tax (to arrive at adjusted proļ¬t after tax), divided by the weighted average number of shares in issue during the ļ¬nancial period. The eļ¬ect of potentially dilutive ordinary shares is incorporated into the diluted measure. The closest equivalent IFRS measures are basic and diluted earnings per share. Ā Unaudited Six months ended 30 June 2026 Ā£ā000 Restated1 30 June 2025 Ā£ā000 Group Underlying Operating Proļ¬t 15,942 14,373 Proļ¬t attributable to non-controlling interest (31) (57) Net ļ¬nance costs (excluding exceptional items, contingent consideration items and discounting on lease liabilities) (152) (170) Normalised taxation (tax rate 25% (2025: 25%)) (3,940) (3,537) Adjusted proļ¬t after tax before exceptional items, share-based payments and amortisation 11,819 10,609 1 Restated due to revised deļ¬nition of Group Underlying Operating Proļ¬t. Unaudited - Six months ended 30 June Ā Adjusted proļ¬t after tax Ā£'000 Weighted average number of shares 2026 Per share amount Pence Restated1 Adjusted proļ¬t after tax Ā£'000 Weighted average number of shares Restated1 2025 Per share amount Pence Adjusted basic EPS 11,819 99,678,549 11.9 10,609 102,430,171 10.4 Eļ¬ect of dilutive share options Ā 1,687,914 Ā Ā 922,288 Adjusted diluted EPS 11,819 101,366,463 11.7 10,609 103,352,459 10.3 1 Restated due to revised deļ¬nition of Group Underlying Operating Proļ¬t. d) Ā Ā Ā Ā Ā Ā Ā Adjusted cash ļ¬ow from operations Adjusted cash ļ¬ow from operations is deļ¬ned as cash generated from operations before exceptional items, less the repayment of the principal portion of lease liabilities, plus the utilisation of PI provisions. e) Ā Ā Ā Ā Ā Ā Ā Cash ļ¬ow conversion rate Cash ļ¬ow conversion rate is deļ¬ned as adjusted cash ļ¬ow from operations, divided by Group underlying operating proļ¬t. 30 June 2026 Restated1 30 June 2025 Ā Ā£ā000 Ā£ā000
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Adjusted cash ļ¬ow from operations 9,158 7,363 Group underlying operating proļ¬t from continuing operations 15,942 14,373 Cash ļ¬ow conversion rate 57% 51% 1 Restated due to revised deļ¬nition of Group Underlying Operating Proļ¬t. 6. Discontinued operations In 2023, the Group franchised its entire owned estate agency network of 183 branches, with the operations of the previously ownednetwork disposed to a combination of new and existing franchisees between 3 May and 31 May 2023. The operations of thebranches were sold to the franchisees through either asset or share sales. The operations of the owned branch network wereclassiļ¬ed as a discontinued operation and presented as such in the Consolidated Condensed Group Financial Statements, please referto note 6 in the Group Financial Statements for the year ended 31 December 2025 for further information. During the six months to 30 June 2026 the Group recognised post tax proļ¬ts from discontinued operations of Ā£0.3m (six months to30 June 2025: Ā£0.1m loss) due to reductions in dilapidation and restructuring provisions recognised as part of the original asset andshare sales, as per note 25 of the Group Financial Statements for the year ended 31 December 2025. 7. Exceptional items UnauditedSix months ended Ā 30 June 202630 June 2025 Ā Ā£'000 Ā£'000 Exceptional costs: Central CEO and CFO change costs - 681 Acquisition related costs 126 - Financial Services restructuring costs - 563 Financial Services appointed representative costs 6 - Financial Services post-acquisition support costs 479 509 Group transformation costs 1,220 - Ā 1,831 1,753 Exceptional gains: Financial Services post-acquisition support gains 2,029 - Estate Agency restructuring gains 21 - Ā 2,050 - Exceptional costsĀ Acquisition related costsDuring the period, the Group incurred Ā£0.1m of acquisition related costs.Ā Financial Services post-acquisition support costsOn 2 February 2024, the Group acquired the entire issued share capital of TenetLime Limited ("TenetLime"), a subsidiary of TenetGroup Limited ("Tenet Group"). As part of the purchase agreement, Tenet Group agreed to provide a number of services to LSL afterthe transaction. Subsequent to the purchase, LSL was notiļ¬ed that Tenet Group Limited entered administration on 5 June 2024. During the period, the Group reached a settlement with the administrators of Tenet Group and recognised total exceptional gains ofĀ£2.0m. In connection with the settlement, the Group also recognised provisions of Ā£0.5m for costs for which it has become liable.These provisions have been recognised as exceptional costs during the period. All exceptional costs incurred to date have been recovered through the settlement. Management does not expect the Group to incurany further irrecoverable costs beyond those costs recovered in the settlement.Ā Group transformation costsTransformation costs of Ā£1.2m have been recognised as exceptional costs in the period. These costs relate to the Groupās Boardapproved transformation programme to simplify its operating model by moving selected activities previously performed withinDivisional teams into a central hub. The programme is intended to improve eļ¬ciency, standardise processes, reduce duplicationwhile strengthening Group-wide operational capabilities and creating new revenue opportunities. Implementation will progress through 2026 and 2027, with the programme expected to deliver at least Ā£5m of annualised beneļ¬tsand support our ambition to increase Group underlying operating margin above 20%. Costs incurred to date included dedicatedprogramme resources and restructuring related costs. Exceptional gains Financial Services post-acquisition support gainsOn 6 May 2026, the Group entered into a settlement agreement with Tenet Groupās administrators, under which Tenet Group wasreleased from its obligation to provide post-acquisition services to the Group under the original purchase agreement. As a result ofthe settlement, all exceptional costs incurred to date have been recovered and management estimates that the Company will notincur any further irrecoverable costs beyond those additional costs recovered in the settlement. 8. Dividends paid and declared
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Unaudited Ā Six Months Ended Ā Ā 30 June 2026 30 June 2025 Ā Ā Ā£'000 Ā£'000 Continuing operations Ā 3,698 2,936 Discontinued operations Ā 90 (30) Total tax charge in the income statement Ā 3,788 2,906 Ā A ļ¬nal dividend in respect of the year ended 31 December 2025 of 7.4 pence per share (December 2024: 7.4 pence per share) waspaid to its equity shareholders in the period ended 30 June 2026.Ā An interim dividend has been declared amounting to 4.0 pence pershare (June 2025: 4.0 pence per share).Ā Interim dividends are recognised when paid. 9. Taxation The major components of continuing income tax charge in the interim Group income statements are: Ā Ā Unaudited Ā Six Months Ended Ā Ā 30 June 2026 30 June 2025 Ā Ā Ā£'000 Ā£'000 UK corporation tax: - current year charge Ā 3,233 2,862 - adjustment in respect of prior years Ā 112 - Ā Ā 3,345 2,862 Deferred tax: Origination and reversal of temporary diļ¬erences Ā (62) 74 Adjustment in respect of prior year Ā 415 - Ā Ā 353 74 Total tax charge in the income statement Ā 3,698 2,936 The total tax charge in the income statement split between continuing and discontinued operations is: The headline UK rate of corporation tax for the period is 25% (2025: 25%), and the rate at which deferred tax has been provided is 25% (2025: 25%). Income tax expense for the interim period is determined by applying managementās best estimate of the weighted-average income tax rate for the annual period, adjusted for certain items fully applicable to the interim period if needed, to proļ¬t or loss before tax. 10. Goodwill and other intangible assets Ā Goodwill Brand Franchise agreements Software Relationship Assets Total Ā Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Cost At 01 January 2026 16,855 6,911 12,766 24,542 9,295 70,369 Additions - - - 1,218 - 1,218 Acquisitions through business combinations (note 18) 2,195 - 1,054 21 - 3,270 At 30 June 2026 19,050 6,911 13,820 25,781 9,295 74,857 Amortisation and impairment At 01 January 2026 - - 2,749 19,336 1,548 23,633 Amortisation - - 515 720 387 1,622 At 30 June 2026 - - 3,264 20,056 1,935 25,255 Net book value At 30 June 2026 19,050 6,911 10,556 5,725 7,360 49,602 At 31 December 2025 16,855 6,911 10,017 5,206 7,747 46,736
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11. Financial assets Unaudited Audited Year Ended 30 June 2026 31 December 2025 Ā Ā£ā000 Ā£ā000 (a)Ā Ā Ā Ā Ā Financial assets at fair value through other comprehensive income (FVOCI) Unquoted shares at fair value - - (b)Ā Ā Ā Ā Ā Financial assets at fair value through income statement (FVPL) Unquoted shares at fair value 1,613 963 (c)Ā Ā Ā Ā Ā Financial assets at amortised cost Investment in sublease 156 295 Loans to joint venture - 13,840 Loans to franchisees and appointed representatives 5,713 3,650 Ā 7,482 18,748 Non-current assets 5,513 2,917 Current assets 1,969 15,831 Ā 7,482 18,748 (a) Ā Ā Ā Ā Ā Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income (FVOCI) include unlisted equity instruments which are carried at fair value and measured using level 3 valuation techniques. The Group holds equity instruments in NBC Property Master Limited and Global Property Ventures Limited which are carried at Ā£nil value. Ā (b) Ā Ā Ā Ā Ā Financial assets at fair value through income statementĀ Financial assets through proļ¬t or loss (FVPL) include unquoted units in Twenty7Tec Group Limited, Openwork Partnership LLP andCollaborative Conveyancing Limited, which are carried at fair value and measured using level 2 valuation technique. During the periodno gains/(losses) were recognised in the income statement: Ā 30 June 2026 31 December 2025 Ā Ā£ā000 Ā£ā000 Fair value gains on equity investments at FVPL recognised in other operating costs - 201 Net fair value gain on contingent consideration recognised as exceptional - (230)Ā Openwork unitsAs at 30 June 2026, the fair value of the Groupās investment in units held in The Openwork Partnership LLP remained unchanged atĀ£0.6m (31 December 2025: Ā£0.6m). The Groupās valuation is based on the traded price from the most recent trading window.Ā Twenty7TecThe Groupās holdings in equity instrument in Twenty7Tec Group Limited remained at Ā£0.4m (31 December 2025: Ā£0.4m). This isbased on a recent external valuation of the business and is therefore indicative of a fair value. Collaborative ConveyancingIn April 2026, the Group subscribed for 22,346 ordinary shares in Collaborative Conveyancing Limited for total cash consideration ofĀ£0.7m. The consideration is a recent valuation of the business and is therefore indicative of a fair value. Fair values of ļ¬nancial assets Ā There is no diļ¬erence in the book amounts and fair values of all the Groupās ļ¬nancial assets that are carried in these InterimCondensed Consolidated Group Financial Statements. Fair value hierarchy As at 30 June 2026, the Group held the following ļ¬nancial assets measured at fair value. The Group uses the following hierarchy for determining and disclosing the fair value of the ļ¬nancial assets by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets; Level 2: other techniques for which all inputs which have a signiļ¬cant eļ¬ect on the recorded fair value are observable, either directly or indirectly; and Level 3: techniques which use inputs which have a signiļ¬cant eļ¬ect on the recorded fair value that are not based on observable market data. Unaudited - 30 June 2026 Total Level 1 Level 2 Level 3 Ā Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Assets measured at fair value Financial assets 1,613 - 1,613 -
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Audited - 31 December 2025 Total Level 1 Level 2 Level 3 Ā Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Assets measured at fair value Financial assets 963 - 963 - Ā (c) Ā Ā Ā Ā Ā Financial assets measured at amortised costĀ Financial assets measured at amortised cost include investment in subleases and loans to franchisees and appointed representatives.Ā Investment in subleasesThe Group recognises an investment in sublease in scenarios where it is an intermediate lessor, and the sublease is classiļ¬ed as aļ¬nance lease. On recognition, the investment in sublease is valued as the remaining ļ¬xed payments due from the sublessor,discounted at the discount rate implicit in the headlease. The Group recognises ļ¬nance income over the remaining life of the leases.An expected credit loss has been provided against the investment in sublease of Ā£0.1m, applying a 12-month expected credit lossmodel. Loans to franchisees and appointed representatives The loans to franchisees and appointed representatives balance includes loans to franchisees in the Estate Agency Franchising segment and loans to appointed representatives in Financial Services segment. The Group provides loans to franchisees and appointed representatives as part of its normal commercial arrangements. Loans to franchisees typically have terms of up to ļ¬ve years, while loans to appointed representatives typically have terms of up to three years. During the period, aggregate cash advances under these arrangements were Ā£3.6m (H1 2025: Ā£1.9m). In accordance with IFRS 9, the loans were initially recognised at fair value of Ā£3.0m (H1 2025: Ā£1.4m), comprising Ā£2.6m of franchisee loans and Ā£0.4m of appointed representative loans. Ā Principal repayments received during the period were Ā£1.2m (H1 2025: Ā£0.6m), comprising Ā£1.0m from franchisees and Ā£0.2m fromappointed representatives. At 30 June 2026, loss allowances measured applying a 12-month expected credit loss model were Ā£0.2magainst franchisee loans (2025: Ā£0.1m) and Ā£0.1m against appointed representative loans. Loan notes receivable In January 2026, Mottram Topco Limited repaid Ā£10.7m out of the Ā£13.8m loan notes outstanding in cash. Ā£3.2m was converted to ordinary shares in Mottram Topco Limited, representing an increase in the investment balance in the joint venture. 12. Cash and cash equivalents Bank overdrafts reļ¬ect the aggregate overdrawn balances of Group companies (even if those companies have other positive cashbalances). The overdrafts are held with the Groupās relationship banks.Ā For the purpose of the statement of cash ļ¬ows, the Groupās cash and cash equivalents position is presented net, as shown below: Ā Unaudited Audited Year Ended 30 June 2026 31 December 2025 Ā Ā£ā000 Ā£ā000 Cash and cash equivalents 53,923 67,050 Bank overdrafts (31,938) (39,253) Cash and cash equivalents 21,985 27,797 13. Financial liabilities Unaudited Audited Year Ended Ā 30 June 2026 31 December 2025 Ā Ā£ā000 Ā£ā000 Current IFRS 16 lease ļ¬nancial liabilities 1,936 2,354 Contingent consideration liabilities 840 3,259 Ā 2,776 5,613 Non-current IFRS 16 lease ļ¬nancial liabilities 3,677 4,148 Ā 3,677 4,148 Contingent consideration liabilities: Unaudited Audited Year Ended Ā 30 June 2026 31 December 2025 Ā Ā£ā000 Ā£ā000
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TenetLime - 3,259 NSS 792 - Meyers 48 - Ā 840 3,259 Opening balance 3,259 3,306 Additions 817 - Repaid (3,330) - Amounts recorded through the income statement 94 (47) Closing balance 840 3,259 TenetLime Limited On 2 February 2024, LSL Property Services plc (āLSLā) acquired the entire issued share capital of TenetLime Limited (āTenetLimeā), which was previously a subsidiary of Tenet Group Limited (āTenet Groupā). As part of the purchase agreement, Tenet Group agreed to provide certain services to the Group following completion. Tenet Group entered administration on 5 June 2024 and were unable to provide these services to the Group. On 6 May 2026, the Group entered into a settlement agreement with Tenet Groupās administrators, under which Tenet Group was released from its obligation to provide post-acquisition services to the Group under the original purchase agreement. The Group has settled the Ā£3.3m consideration outstanding in full in 2026. See note 7 for further details. NSS Franchising Ltd See note 18 for further detail. Meyers Franchising Limited See note 18 for further detail. Fair values of ļ¬nancial liabilities There is no diļ¬erence in the book amounts and fair values of all the Groupās ļ¬nancial liabilities that are carried in these Interim Condensed Consolidated Group Financial Statements. Fair value hierarchy As at 30 June 2026, the Group held the following ļ¬nancial liabilities measured at fair value. The Group uses the following hierarchy for determining and disclosing the fair value of the ļ¬nancial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical liabilities; Level 2: other techniques for which all inputs which have a signiļ¬cant eļ¬ect on the recorded fair value are observable, either directly or indirectly; and Level 3: techniques which use inputs which have a signiļ¬cant eļ¬ect on the recorded fair value that are not based on observable market data. Ā As at 30 June 2026, the Group held ļ¬nancial liabilities valued using level 3 valuation technique of Ā£0.8m (31 December 2025: Ā£3.3m) Risk management Ā The Groupās principal ļ¬nancial instruments comprise cash and cash equivalents with access to a further Ā£60m revolving credit facilitywhich is undrawn at the balance sheet date. The main purpose of these ļ¬nancial instruments is to raise ļ¬nance for the Groupāsoperations and support its capital allocation policy. The Group has various ļ¬nancial assets and liabilities such as trade receivables,cash and short term deposits and trade payables, which arise directly from its operations.Ā The Group is exposed through its operations to the following ļ¬nancial risks: interest rate risk; liquidity risk; and credit risk. Ā The policy for managing these risks is established by the Board following recommendations from the Group Chief Financial Oļ¬cer.Certain risks are managed centrally, while others are managed locally following communications from the Centre, and the methodsused to manage these risks have not changed since 31 December 2025. Further details of the risk management policies of the Groupare disclosed in note 31 of the Groupās Financial Statements for the year ended 31 December 2025. 14. Provisions PI claim provisions Dilapidation provision Restructuring provision Appointed representative provision Post acquisition support provision1 Total Ā Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Ā£ā000 Balance at 1 January 2026 4,321 4,336 996 1,615 - 11,268 Provided in the period 640 309 56 188 460 1,653
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Amount utilised (325) (232) (156) (102) - (815) Amount released (153) (495) (150) (49) - (847) Unwinding of discount - 214 - - - 214 Balance at 30 June 2026 4,483 4,132 746 1,652 460 11,473 Current liabilities 1,128 2,163 746 886 460 5,383 Non-current liabilities 3,355 1,969 - 766 - 6,090 Ā 4,483 4,132 746 1,652 460 11,473 1Refer to note 7 15. Investment in joint venture Unaudited Audited Year Ended Ā 30 June 2026 31 December 2025 Ā Ā£ā000 Ā£ā000 Opening balance 14,988 11,585 Equity investment 3,179 2,605 Equity accounted proļ¬t 414 1,195 Adjustment for non-controlling interests (280) (397) Closing balance 18,301 14,988 In January 2026, Mottram Topco Limited repaid Ā£10.7m out of the Ā£13.8m loan notes outstanding in cash. Ā£3.2m was converted to ordinary shares in Mottram Topco Limited, representing an increase in the investment balance in the joint venture. 16. Related party transactions Ā The Group is party to one joint venture, Mottram TopCo Limited. Ā Transactions with Mottram TopCo Limited (Pivotal Growth) and its subsidiaries Ā Unaudited Ā Six Months Ended Ā 30 June 30 June Ā 2026 2025 Ā Ā£ā000 Ā£ā000 Revenue recognised 1,519 1,347 Unaudited Audited Year Ended Ā 30 June 2026 31 December 2025 Ā Ā£ā000 Ā£ā000 Trade receivable 575 522 Loan notes receivable - 13,840 In January 2026, Mottram Topco Limited repaid Ā£10.7m out of the Ā£13.8m loan notes outstanding in cash. Ā£3.2m was converted to ordinary shares in Mottram Topco Limited, representing an increase in the investment balance in the joint venture. 17. Events after the reporting period In July 2026, the Group paid the ļ¬rst contingent consideration of Ā£0.6m for the acquisition of NSS. See note 18 for further details. 18. Business Combination Acquisition of NSS Franchising Ltd On 22 January 2026, the Group acquired 100% of the issued share capital of NSS Franchising Ltd (āNSSā) through LSLI Limited, a subsidiary of LSL Property Services plc. NSS operates a property search franchise business. The acquisition provides the Group with access to an established property search franchise network and opportunities to expand the Groupās property search capability. The acquisition has been accounted for as a business combination under IFRS 3. The provisional fair values of the identiļ¬able assets and liabilities of NSS Franchising Ltd as at the date of acquisition were: Ā 2026 Ā Ā£ā000
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Fair value of consideration transferred Amount settled in cash 2,542 Fair value of contingent consideration 774 Total 3,316 Recognised amounts of identiļ¬ed net assets Property, plant and equipment and right-of-use assets 114 Other intangible assets 707 Total non-current assets 821 Trade and other receivables 75 Cash and cash equivalents 1,097 Total current assets 1,172 Financial liabilities (17) Trade and other payables (381) Total current liabilities (398) Financial liabilities (83) Deferred tax liability (180) Total non-current liabilities (263) Identiļ¬able net assets 1,332 Goodwill on acquisition (note 10) 1,984 Consideration transferred settled in cash (2,542) Cash and cash equivalents acquired 1,097 Net cash outflow on acquisition (1,445) Acquisition costs charged to expenses 24 The fair value assessment of the assets and liabilities acquired has not been ļ¬nalised by the date the interim ļ¬nancial statements were approved for issue by the Board of Directors. Thus, the net assets acquired may be subsequently adjusted with a corresponding adjustment to goodwill and deferred tax prior to 22 January 2027 (one year after the transaction), as permitted by IFRS 3 Business Combinations. The acquisition of NSS was settled in cash amounting to Ā£2.5m. As part of the acquisition, the Group agreed additional contingent consideration arrangements with the sellers. The contingent consideration comprises two elements. First contingent consideration of Ā£0.6m, payable six months after completion subject to the satisfaction of speciļ¬ed operational-readiness conditions following completion; and second contingent consideration of up to Ā£0.5m, payable by reference to the gross proļ¬t performance of NSS during the ļ¬rst twelve months following completion. The Group paid the ļ¬rst contingent consideration of Ā£0.6m in July 2026. The contingent consideration has been accounted for as part of the consideration transferred for the acquisition and recognised at fair value at the acquisition date. The fair value reļ¬ects managementās assessment of the expected amount payable, the probability of achieving the relevant conditions and the timing of expected settlement. Any subsequent remeasurement of the contingent consideration liability is recognised in the Group Income Statement. Acquisition related costs amounting to Ā£0.02m are not included as part of consideration transferred and have been recognised as an expense in the Interim Group Income Statement, as part of other operating costs. The Group has preliminarily recognised a separately identiļ¬able franchise agreement intangible asset of Ā£0.7m. The asset represents the value of contractual rights arising from NSSās existing franchise agreements. A deferred tax liability of Ā£0.2m has been preliminarily recognised in relation to this asset on the basis that the franchise agreement intangible has a nil tax base. Goodwill of Ā£2.0m has been preliminarily recognised. Goodwill principally represents expected future growth opportunities, the assembled workforce, integration beneļ¬ts, synergies and other beneļ¬ts that do not meet the recognition criteria for separate identiļ¬able intangible assets. NSS made a proļ¬t before tax of Ā£0.1m since acquisition and revenue of Ā£1.1m. If NSS had been acquired on 1 January 2026, revenue of the Group for H1 2026 could have increased by Ā£0.1m and proļ¬t for the period would have increased by Ā£0.01m. Acquisition of Meyers Franchising Limited On 31 March 2026, the Group acquired 100% of the issued share capital of Meyers Franchising Limited (āMeyersā) through LSLI Limited, a subsidiary of LSL Property Services plc. Meyers operates a franchise model oļ¬ering estate agency franchise opportunities in the UK. The acquisition provides the Group with access to an established estate agency franchise network and opportunities to expand the Groupās estate agency franchise network. The acquisition has been accounted for as a business combination under IFRS 3. The provisional fair values of the identiļ¬able assets and liabilities of Meyers Franchising Limited as at the date of acquisition were: Ā 2026 Ā Ā£ā000 Fair value of consideration transferred Amount settled in cash 611 Fair value of contingent consideration 43 Total 654
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Recognised amounts of identiļ¬ed net assets Other intangible assets 368 Total non-current assets 368 Trade and other receivables 24 Cash and cash equivalents 191 Total current assets 215 Trade and other payables (53) Total current liabilities (53) Deferred tax liability (87) Total non-current liabilities (87) Identiļ¬able net assets 443 Goodwill on acquisition (note 10) 211 Consideration transferred settled in cash (611) Cash and cash equivalents acquired 191 Net cash outflow on acquisition (420) Acquisition costs charged to expenses 3 The fair value assessment of the assets and liabilities acquired has not been ļ¬nalised by the date the interim ļ¬nancial statements were approved for issue by the Board of Directors. Thus, the net assets acquired may be subsequently adjusted with a corresponding adjustment to goodwill and deferred tax prior to 31 March 2027 (one year after the transaction), as permitted by IFRS 3 Business Combinations. The acquisition of Meyers was settled in cash amounting to Ā£0.6m. The sale and purchase agreement includes contingent consideration of up to Ā£0.05m, payable in cash to the seller. The amount payable is dependent on the achievement of certain performance related and operational conditions over 12 months post- acquisition. Any amount payable is determined after that period and is settled shortly after the calculation is agreed. The contingent consideration has been accounted for as part of the consideration transferred for the acquisition and recognised at fair value at the acquisition date. The fair value reļ¬ects managementās assessment of the expected amount payable, the probability of achieving the relevant conditions and the timing of expected settlement. Any subsequent remeasurement of the contingent consideration liability is recognised in the Group Income Statement. Acquisition related costs amounting to Ā£0.003m are not included as part of consideration transferred and have been recognised as an expense in the Interim Group Income Statement, as part of other operating costs. The Group has preliminarily recognised a separately identiļ¬able franchise agreement intangible asset of Ā£0.3m. The asset represents the value of contractual rights arising from Meyersā existing franchise agreements. A deferred tax liability of Ā£0.1m has been preliminarily recognised in relation to this asset on the basis that the franchise agreement intangible has a nil tax base. Goodwill of Ā£0.2m has been preliminarily recognised. Goodwill principally represents expected future growth opportunities, the assembled workforce, integration beneļ¬ts, synergies and other beneļ¬ts that do not meet the recognition criteria for separate identiļ¬able intangible assets. Meyers made a proļ¬t before tax of Ā£0.1m since acquisition and revenue of Ā£0.1m. If Meyers had been acquired on 1 January 2026, revenue of the Group for H1 2026 could have increased by Ā£0.1m and proļ¬t for the period would have increased by Ā£0.02m. Independent review report to LSL Property Services plc Conclusion We have been engaged by LSL Property Services plc (the ācompanyā) to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2026 which comprises the Interim Group Income Statement, Interim Group Balance Sheet, Interim Group Statement of Cash Flows, Interim Group Statement of Changes in Equity and the notes to the Interim Condensed Consolidated Group Financial Statements. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2026 is not prepared, in all material respects, in accordance with UK-adopted International Accounting Standard (IAS) 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority. Basis for conclusion We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, āReview of Interim Financial Information Performed by the Independent Auditor of the Entityā issued by Financial Reporting Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in
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accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. As disclosed in note 1, the annual financial statements of the group are prepared in accordance with UK- adopted international accounting standards. The condensed set of financial statements included in this half yearly financial report has been prepared in accordance with UK adopted International Accounting Standard 34, āInterim Financial Reportingā. Conclusions relating to going concern Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis of conclusion section of this report, nothing has come to our attention to suggest that management have inappropriately adopted the going concern basis of accounting or that management have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with this ISRE (UK), however future events or conditions may cause the entity to cease to continue as a going concern. In our evaluation of the directorsā conclusions, we considered the inherent risks associated with the groupās business model including effects arising from macro-economic uncertainties such as inflationary pressures, geopolitical uncertainty and tightening credit conditions, and we assessed and challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks might affect the groupās financial resources or ability to continue operations over the going concern period. Directors' responsibilities The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with UK-adopted International Accounting Standard (IAS) 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.
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In preparing the half-yearly financial report, the directors are responsible for assessing the companyās ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. Auditorās responsibilities for the review of the financial information In reviewing the half-yearly report, we are responsible for expressing to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report. Our conclusion, including our Conclusions relating to going concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report. Use of our report This report is made solely to the company in accordance with ISRE (UK) 2410. Our review work has been undertaken so that we might state to the company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusion we have formed. Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Leeds 14 September 2026
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