Full Year Results

About this update from Lsl Property Services Plc

[{"type":"text","content":"\n \n                                                                                                                                                               19 March 2026 \n   \n LSL Property Services plc (\"LSL\" or \"Group\") \n FULL YEAR RESULTS TO 31 DECEMBER 2025 \n   \n Strong financial performance reflected in a record underlying operating margin, 17% profit growth and increased Shareholder returns \n LSL, the leading B2B platform for UK residential property services, reports its preliminary results for the 12 months ended 31 December 2025. Group underlying operating profit 2 increased to £32.6m (2024: £27.8m 6 ), with a record underlying operating margin of 18%. \n Results are in line with the Board's expectations, with progress across the whole Group, another year of strong cash conversion and continued returns to Shareholders through dividends and a newly enlarged share buyback programme. \n The Board's expectation of delivering a further increase in profits in 2026 remains unchanged. \n Adam Castleton, Group Chief Executive of LSL, said: \n \"2025 has been a year of strong delivery and building momentum for LSL. We improved profitability across each Division, achieved record margins and generated strong cash, while continuing to invest for future growth. Markets are evolving, and so are we. 2025 has been a year of significant activity for the Group. We are focused on disciplined execution and converting the scale and capability of the Group into sustained profit growth and continued high returns on capital.  Trading in 2026 has been in line with our expectations.\" \n   \n FINANCIAL HIGHLIGHTS 1 \n ·      Group Revenue of £182.9m (2024: £173.3m 6 ). Revenue up 6%, maintaining strong market share in all three Divisions \n ·      Group Underlying Operating Profit 2 of £32.6m (2024: £27.8m 6 ). Up 17%, including over £1m of NIC tax increase \n ·      Group Underlying Operating Margin at 18% (2024: 16%). A record high, surpassing the 15-year high reported in the prior period \n ·      Group Operating Profit of £22.6m (2024: £21.9m). Up 3% after exceptional costs of £5.1m (2024: £4.1m) \n ·      Adjusted Operating Cash Flow 3 of £29.8m (2024: £31.1m) with cash conversion of 91% \n ·      ROCE of 35% (2024: 32%). With higher returns under the new operating model compared to historical levels (2016 - 2023: 18%) \n ·      Net Cash of £27.8m 3 at 31 December 2025 (31 December 2024: £32.4m; 30 June 2025: £22.0m) \n ·      Full year dividend of 11.4p per share (2024: 11.4p), with final dividend maintained at 7.4p per share reflecting strong balance sheet and Board's confidence in prospects. \n ·      The £7m share buy-back programme is now complete. A newly enlarged £12m share buy-back programme was launched in January 2026 \n   \n STRATEGIC AND OPERATIONAL HIGHLIGHTS \n The Group's performance reflects the quality of its underlying businesses and the benefits of a simpler structure. We are making better use of the combined strengths of LSL, with a clear focus on broadening our commercial reach and improving structural cost effectiveness. In this regard, 2025 has been a year of significant activity as we have executed on our plans to drive Shareholder returns: \n \n \n   \n Innovation, data and technology \n ·      We are actively adopting and deploying technology across our business to enhance capability and extend our service offering. We have signed our first Automated Valuation Model (AVM) contract with one of the UK's largest lenders, with significant partner interest in future development and adoption; reflecting Surveying & Valuation Division's product suite expansion and commitment to technological innovation. e.surv is the residential property valuation market leader in the UK through its comprehensive property risk expertise and is the only provider that offers AVM, remote and physical property valuations. \n ·     Roll-out of the new broker operating platform, (including CRM), continues in the Financial Services Division to drive productivity. \n ·     Deployment of digital solutions delivering process automation and supporting targeted identification of additional service opportunities particularly in the Surveying & Valuation Division. \n   \n Continuing to add scale \n ·     Financial Services Division market share increased, with our overall share of the UK purchase and remortgage market increasing to 12.0% 5 (2024: 11.8%). \n ·      B2C Revenue growth of 16% on last year in Surveying & Valuation Division. \n ·      Ten lettings books acquisitions by franchisees and six new branch openings in Estate Agency Franchising Division. Strong pipeline for further transactions in 2026. \n ·      In January 2026, the Group completed the small bolt-on acquisition of National Search Service (NSS), a leading property search company, enhancing LSL's conveyancing service proposition in the Estate Agency Franchising Division. The acquisition is expected to be earnings accretive in year one. \n   \n Enhancing our expertise and culture \n ·      Record levels of employee engagement at 77% (2024: 73%). \n ·      Winner of 2025 Moneyfacts Awards - PRIMIS, Mortgage Network of the Year and e.surv, Best Surveying Service of the Year. \n ·      David Tilak joined as Group CFO in January 2026 bringing over 25 years' experience in strategic, financial and operational roles across complex multinational businesses. \n   \n Leveraging the strengths of the Group \n ·     Strengthened cross-Divisional working across LSL, reinforcing strategic relationships with lenders and partners, developing commercial alignment and cross sell opportunities. \n ·       Commenced organisational design work to evolve shared functions in support of scale and improved coordination across the Group. \n   \n Other operational highlights \n ·     Pivotal Growth JV continues to gain scale with 24 acquisitions to date with a strong M&A pipeline. Pivotal secured external committed debt funding, repaying shareholder loans, with no anticipation for further Shareholder cash investment. \n ·      Central costs reduced to £10.2m (2024: £11.1m). \n ·      Total shareholder return (dividend and share buyback) of £16.8m (2024: £12.6m). \n   \n CURRENT TRADING AND OUTLOOK \n We have made a positive start to the year across the Group, with trading in our businesses in line with expectations and our end markets operating in line with our assumptions. Our current performance supports our expectation of delivering a further increase in profits in 2026. \n Since year end, we have continued to remain active across the Group. In Estate Agency Franchising, we completed the acquisitions of NSS and three further lettings books and have developed a healthy pipeline of lettings book acquisitions and other opportunities to increase our footprint. In Financial Services, the roll-out of our broker operating platform continues as planned, which will support improved productivity and product penetration. Across the Group, we remain focused on operational efficiency and cost management as we scale the Group through targeted investment and commercial execution. We are investing in digital solutions, data science, and AI in the Group, supporting productivity, enhancing decision making and complementing the professional expertise within our businesses. \n The macroeconomic and geopolitical environment remains uncertain, with renewed concerns around inflation and interest rate expectations contributing to near-term uncertainty. We have not seen any adverse impact on trading across the Group in recent weeks, with front-end metrics remaining stable. We have seen some short-term strength in mortgage activity driven by changes to product pricing. With daily granular data across the residential property and mortgage ecosystem, we have clear visibility of leading indicators of demand and can respond accordingly. \n We continue to run the business with discipline and a clear focus on performance and structural cost effectiveness. The Board remains confident in the Group's short and medium-term prospects and continues to support disciplined investment across our businesses to strengthen capability, enhance returns and drive growth. \n FINANCIAL SUMMARY \n   \n \n \n \n \n Key Financials 1 \n \n \n 12 months to 31.12 2025 \n \n \n Restated 6 \n 12 months to 31.12 \n 2024 \n \n \n Year on year change \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Group revenue (£m) \n \n \n 182.9 \n \n \n 173.3 \n \n \n 6% \n \n \n \n \n Group underlying operating profit 2 (£m) \n \n \n 32.6 \n \n \n 27.8 \n \n \n 17% \n \n \n \n \n Group underlying operating margin (%) \n \n \n 18% \n \n \n 16% \n \n \n 180bps \n \n \n \n \n Group operating profit (£m) \n \n \n 22.6 \n \n \n 21.9 \n \n \n 3% \n \n \n \n \n Profit before tax (£m) \n \n \n 23.1 \n \n \n 23.1 \n \n \n 0% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash flow from operations (adjusted) 3 (£m) \n \n \n 29.8 \n \n \n 31.1 \n \n \n (6)% \n \n \n \n \n Net cash 3 at 31 December (£m) \n \n \n 27.8 \n \n \n 32.4 \n \n \n (14)% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Basic earnings per share (pence) \n \n \n 16.6 \n \n \n 17.4 \n \n \n (4)% \n \n \n \n \n Adjusted basic earnings per share 4 (pence) \n \n \n 24.4 \n \n \n 21.1 \n \n \n 16% \n \n \n \n \n Dividend per share (pence) \n \n \n 11.4 \n \n \n 11.4 \n \n \n - \n \n \n \n \n   \n Notes: \n 1.        Stated on basis of continuing operations unless otherwise stated. Following the conversion of the entire owned estate agency network to franchises in 2023, the previously owned network was classified as a discontinued operation and is presented as such in the Financial Statements. Refer to note 6 to the Financial Statements \n 2.        Group (and Divisional) Underlying Operating Profit is stated before exceptional items, contingent consideration assets & liabilities, amortisation of intangible assets, share-based payments and other sources of earnings from joint ventures. Refer to note 5 to the Financial Statements for reconciliation of Group and Divisional Underlying Operating Profit to statutory operating profit/(loss) for continuing, discontinued and total operations. \n 3.        Refer to note 34 to the Financial Statements \n 4.        Refer to note 12 to the Financial Statements for the calculation \n 5.        New mortgage lending by purpose of loan, Bank of England Table A5.3 - (31 January 2026) \n 6.        Refer to note 35 to the Financial Statements \n \n \n   \n For further information, please contact: \n \n \n \n \n \n Adam Castleton, Chief Executive Officer \n \n \n \n \n \n \n \n David Tilak, Chief Financial Officer \n \n \n \n \n \n \n \n LSL Property Services plc \n \n \n [email protected] \n \n \n \n \n \n \n \n \n \n \n \n \n Helen Tarbet \n \n \n \n \n \n \n \n Sophie Wills \n \n \n \n \n \n \n \n Toto Berger \n \n \n \n \n \n \n \n Burson Buchanan \n \n \n 0207 466 5000 / [email protected] \n \n \n \n \n \n \n   \n Notes on LSL \n   \n LSL is one of the largest providers of services to mortgage intermediaries and estate agent franchisees. \n   \n Over 2,500 advisers representing around 12% of the total purchase and remortgage market. \n   \n Its 62 estate agency franchisees operate 293 branches. \n   \n LSL is also one of the UK's largest providers of surveying and valuation services, supplying five out of the six largest lenders in the UK. \n   \n For further information please visit LSL's website:  lslps.co.uk  \n   \n LEI: 213800T4VM5VR3C7S706 \n \n \n   \n Group Chief Executive Officer's Review \n 2025 was another strong year of delivery for LSL. We achieved organic revenue growth, increased profits, record operating margins and another year of strong cash generation, driving improved ROCE. \n We were very active throughout the year, investing selectively to drive scale and profitable growth, launching new offerings into the market, and beginning to make greater use of the Group's combined strengths. We also strengthened capabilities across the business and saw colleague engagement rise to a record level. \n Our strong balance sheet provides flexibility to invest selectively for growth while continuing to return capital through dividends and our recently increased share buyback programme. \n Review of 2025 \n The markets in which we operate further stabilised in 2025. Mortgage activity strengthened year-on-year as pricing eased and affordability pressures moderated, with both purchase and remortgage volumes improving. Housing transactions increased, with activity front-loaded into the first half ahead of stamp duty changes, and rental markets remained resilient. Our end markets performed in line with our planning assumptions at the start of 2025, despite some periodic short-term volatility during the year. \n In this context, we made strong progress in 2025, delivering organic revenue and underlying operating profit growth with a strong improvement in our underlying operating profit margin, which reached a new high. We continue to deliver structurally higher ROCE, at 35%, well above historical levels, reflecting higher operating margin and the Group's capital-light model. Encouragingly, all our Group financial metrics sequentially improved in the second half of the year. \n Revenue increased by 6% to £182.9m (2024: £173.3m 2 ) and we maintained our strong market share in all three Divisions. Improved remortgage activity supported both our Financial Services and Surveying & Valuation Divisions. Revenue growth was 6% year-on-year for H2 2025, a sequential improvement compared to H1 2025. \n Group underlying operating profit 1 was up 17% to £32.6m (2024: £27.8m 2 ) and the underlying operating margin of 18% was an 180bps improvement versus the prior year, marking a new high for the Group. H2 2025 saw a sequential improvement in underlying operating margin to 19%, up 250bps compared to H1 2025. \n Central costs reduced to £10.2m (2024: £11.1m), reflecting tighter cost discipline and a more normalised level of spend. The Pivotal Growth joint venture delivered improved profitability as it continues to scale, with 2025 profit contribution of £1.7m (2024: £6k loss). \n On a statutory basis, Group operating profit was £22.6m (2024: £21.9m 2 ) after exceptional costs of £5.1m (2024: £4.1m). \n We ended the year with net cash of £27.8m (2024: £32.4m), supported by strong underlying profitability and cash conversion of 91%. The business remains consistently cash generative, underpinned by disciplined investment and shareholder returns. \n The next phase for LSL \n Since my appointment in May 2025, I have placed particular emphasis on culture, clarity of ambition and communication across the Group. We have sharpened our focus on structural cost effectiveness and worked more closely across Divisions to make better use of our collective strengths. This has improved alignment across the leadership team and the wider business as we position LSL for the next stage of growth. It has been an important priority for me and will remain so. \n Over recent years, we have simplified and strengthened the Group, building a capital-light and financially resilient model with strong market positions across the residential property and mortgage ecosystem. These foundations, together with our deep and well-established relationships with lenders, insurance product providers, mortgage and insurance brokers and franchise partners, position us well for the next phase of growth. I see considerable scope to build from this platform. \n Each Division provides mission-critical services to its customers that underpin our market positions. By working more effectively across Divisions, we will develop greater commercial alignment, cross sell opportunities and improve our cost to serve. \n Our scale and market access are significant: over 10 million visits to our estate agency websites, more than 270,000 mortgage completions, approximately 500,000 valuations annually and over one million live customers within Financial Services. \n Technology and data remain central to our business. We have a long track record of innovation, and continued deployment of our digital capability is driving efficiency and enhancing our proposition. Our AVM product launch is a clear example of turning proprietary data and expertise into a new commercial opportunity. \n Underpinning this is the strength of our people. We have deep specialist knowledge across our markets, supported by a refreshed and energised leadership team. On 12 January 2026, David Tilak joined the Company as Group Chief Financial Officer and is already making a positive contribution. \n Capital allocation \n Our disciplined approach to capital allocation remains unchanged. Capital is allocated against strict criteria, with a clear focus on improving returns on capital employed and compounding long-term Shareholder value. \n We are committed to delivering sustainable and disciplined returns to Shareholders, supported by the Group's sustained cash generation and strong Balance Sheet. \n In addition to dividends, the Board continues to utilise share buybacks as a complementary capital return mechanism. The £7m programme announced on 25 April 2024 has been completed and, since the period end, a further £12m programme was announced and is being progressed. \n The Board is recommending a final dividend of 7.4 pence per share (2024: 7.4 pence), resulting in a total dividend for the year of 11.4 pence per share (2024: 11.4 pence). While the Group's stated policy remains a pay-out of 30% of Group underlying operating profit after finance and normalised tax charges, the Board has proposed a higher pay-out this year to reflect the strength of cash generation and confidence in the prospects for the Group. \n The ex-dividend date for the final dividend is 14 May 2026, with a record date of 15 May 2026 and a payment date of 16 June 2026. Shareholders may elect to reinvest their cash dividend through the Group's dividend reinvestment plan, with the final election date of 26 May 2026. \n Pivotal Growth joint venture \n Pivotal Growth, our joint venture with Pollen Street Capital established to execute a buy-and-build strategy in the mortgage and protection intermediary markets, has delivered substantial momentum over the last two years and acquired 24 businesses to date, including five in 2025. The business generated revenue approaching £100m in 2025. \n In December 2025, Pivotal Growth secured £80m of committed external funding, supporting further M&A activity. After the year end, the Group's loan notes of £13.8m were fully settled, with £10.6m settled in cash and the remaining £3.2m converted into equity taking LSL's cumulative equity investment to £19.1m. The Group does not expect to make any further cash investments into Pivotal Growth going forward. \n Pivotal was established by the Group and Pollen Street Capital in 2021, and our aim was to build the business with a view to an exit event over a three-to-six-year period after launch. \n Adapting to changing markets \n The markets in which we operate continue to evolve. Regulatory developments, including reforms in the rental sector and the FCA's encouragement of more streamlined and digitally enabled customer journeys, are reshaping expectations across the property and mortgage ecosystem. At the same time, advances in technology and AI are changing how our markets operate. \n I see these changes as an opportunity rather than a threat. We are already deploying digital and data-led solutions across our businesses, including the launch of our AVM capability and the development of digital tools within Financial Services. Crucially, these technologies are integrated with our regulatory expertise and market insight of our people, supported by proprietary datasets and long-standing lender relationships. It is this combination of data, technology and trusted specialist expertise within regulated markets that is highly valued by our customers. Increasingly, lenders and product providers are seeking strategic, mission-critical partners who can combine scale, insight and regulatory understanding. We believe LSL is well positioned to fulfil that role as customer needs and market structures evolve. \n Current trading and outlook \n We have made a positive start to the year across the Group, with trading in our businesses in line with expectations and our end markets operating in line with our assumptions. Our current performance supports our expectation of delivering a further increase in profits in 2026. \n Since year end, we have continued to remain active across the Group. In Estate Agency Franchising, we completed the acquisitions of NSS and three further lettings books and have developed a healthy pipeline of lettings book acquisitions and other opportunities to increase our footprint. In Financial Services, the roll-out of our broker operating platform continues as planned, which will support improved productivity and product penetration. Across the Group, we remain focused on operational efficiency and cost management as we scale the Group through targeted investment and commercial execution. We are investing in digital solutions, data science, and AI in the Group, supporting productivity, enhancing decision making and complementing the professional expertise within our businesses. \n The macroeconomic and geopolitical environment remains uncertain, with renewed concerns around inflation and interest rate expectations contributing to near-term uncertainty. We have not seen any adverse impact on trading across the Group in recent weeks, with front-end metrics remaining stable. We have seen some short-term strength in mortgage activity driven by changes to product pricing. With daily granular data across the residential property and mortgage ecosystem, we have clear visibility of leading indicators of demand and can respond accordingly. \n We continue to run the business with discipline and a clear focus on performance and structural cost effectiveness. The Board remains confident in the Group's short and medium-term prospects and continues to support disciplined investment across our businesses to strengthen capability, enhance returns and drive growth. \n Final thoughts \n I am grateful to our colleagues for their commitment and contribution throughout 2025. It is the combination of experienced people, specialist expertise, proprietary data and long-standing strategic relationships across the residential property and mortgage ecosystem that differentiates LSL and supports our performance. \n There are considerable opportunities ahead for LSL and we are not standing still. My clear ambition is to convert our scale, data and platform capability into sustained revenue and profit growth and high returns on capital through disciplined execution and targeted investment. We remain focused and active as we build on the momentum achieved in 2025. \n   \n   \n   \n Adam Castleton \n Group Chief Executive Officer \n 18 March 2026 \n   \n   \n Notes: \n 1.        Group (and Divisional) Underlying Operating Profit is stated before exceptional items, contingent consideration assets & liabilities, amortisation of intangible assets, share-based payments and other sources of earnings from joint ventures. Refer to note 5 to the Financial Statements for reconciliation of Group and Divisional Underlying Operating Profit to statutory operating profit/(loss) for continuing, discontinued and total operations. \n 2.        Refer to note 35 to the Financial Statements \n   \n \n Financial and Divisional Reviews \n Financial Review \n We report our results for the 12 months ended 31 December 2025 with Group underlying operating profit 1,2 up 17% on last year at £32.6m (2024: £27.8m 5 ). On a statutory basis Group operating profit was £22.6m (2024: £21.9m) whilst net cash was £27.8m at 31 December 2025, with cash conversion of 91%, towards the upper end of our target 75-100%. Underlying operating margin further grew to 18% which is the highest in 15 years (2024: 16%). These results demonstrate the continued benefits of the strategic transformation of the Group over the last three years and are in line with consensus expectations and materially ahead of prior year. \n Key financial highlights \n \n \n \n \n Full year financial metrics 1 \n \n \n 2025 \n \n \n Restated 5 \n 2024 \n \n \n Variance \n \n \n \n \n \n \n Revenue (£m) \n \n \n 182.9 \n \n \n 173.3 \n \n \n 6% \n \n \n \n \n Group underlying operating profit 2 (£m) \n \n \n 32.6 \n \n \n 27.8 \n \n \n 17% \n \n \n \n \n Group underlying operating margin (%) \n \n \n 18% \n \n \n 16% \n \n \n 180bps \n \n \n \n \n Group underlying operating profit from total operations 2 (£m) \n \n \n 32.9 \n \n \n 27.3 \n \n \n 21% \n \n \n \n \n Exceptional gains (£m) \n \n \n 0.6 \n \n \n 1.7 \n \n \n (65)% \n \n \n \n \n Exceptional costs (£m) \n \n \n (5.1) \n \n \n (4.1) \n \n \n (24)% \n \n \n \n \n Group operating profit (£m) \n \n \n 22.6 \n \n \n 21.9 \n \n \n 3% \n \n \n \n \n Profit before tax (£m) \n \n \n 23.1 \n \n \n 23.1 \n \n \n - \n \n \n \n \n Loss from discontinued operations 1 (£m) \n \n \n (0.0) \n \n \n (0.4) \n \n \n 100% \n \n \n \n \n Basic earnings per share (pence) \n \n \n 16.6 \n \n \n 17.4 \n \n \n (4)% \n \n \n \n \n Adjusted basic earnings per share 4 (pence) \n \n \n 24.4 \n \n \n 21.1 \n \n \n 16% \n \n \n \n \n Net cash 3 at 31 December (£m) \n \n \n 27.8 \n \n \n 32.4 \n \n \n (14)% \n \n \n \n \n Final dividend per share (pence) \n \n \n 7.4 \n \n \n 7.4 \n \n \n - \n \n \n \n \n Full year dividend per share (pence) \n \n \n 11.4 \n \n \n 11.4 \n \n \n - \n \n \n \n \n   \n Notes: \n 1.        Stated on basis of continuing operations unless otherwise stated. Following the conversion of the entire owned estate agency network to franchises in 2023, the previously owned network was classified as a discontinued operation and is presented as such in the Financial Statements. Refer to note 6 to the Financial Statements \n 2.        Group (and Divisional) Underlying Operating Profit is stated before exceptional items, contingent consideration assets & liabilities, amortisation of intangible assets, share-based payments and other sources of earnings from joint ventures. Refer to note 5 to the Financial Statements for reconciliation of Group and Divisional Underlying Operating Profit to statutory operating profit/(loss) for continuing, discontinued and total operations. \n 3.        Refer to note 34 to the Financial Statements \n 4.        Refer to note 12 to the Financial Statements for the calculation \n 5.        Refer to note 35 to the Financial Statements \n   \n \n   \n Group Income Statement Review 1 \n Group revenue \n Group revenue increased 6% to £182.9m (2024: £173.3m 4 ) in a total lending market that has continued to recover following a period of volatility. The Surveying & Valuation Division increased by 10% compared to prior year as a result of a 9% increase in jobs performed and 1% increase in income per job. The Financial Services Division remained broadly flat with revenue of £48.8m (2024: £48.4m). The Estate Agency Franchising Division fell by 2% to £26.5m (2024: £27.1m) despite an increase of 10% in residential sales growth, as a result of reduced LSL Land & New Home revenues. \n Group underlying operating profit \n Group underlying operating profit 2 grew strongly by 17% to £32.6m (2024: £27.8m 4 ), with an increase in all three Divisions whilst central costs reduced by 8% to £10.2m (2024: £11.1m) reflecting tighter cost discipline and a more normalised level of spend . The Group further continued to invest in strategic growth initiatives as well as developing enhanced platform and digital capabilities. \n Group operating profit \n Group operating profit increased to £22.6m (2024: £21.9m 4 ), with profit growth in Financial Services and Estate Agency Franchising and a reduction in central costs in the period. The Group also benefitted from a continued improvement in the contribution generated by the Pivotal Growth joint venture, offset by £4.5m net exceptional costs (2024: £2.4m). \n   \n Adjusted operating expenditure \n Adjusted operating expenditure 3 comprises employee costs, other operating costs, and depreciation and totalled £153.2m in 2025, 5% higher than prior year (2024: £146.0m 4 ). The movement comprises the net effect of employee costs increased in Surveying & Valuation Division due to higher demand; the impact of higher National Insurance contributions (from 1 April 2025); partially offset by lower central costs. \n   \n Exceptional items \n The exceptional gain of £0.6m (2024: £1.7m) relates to the release of a claim indemnity provision recognised in 2021. Exceptional costs of £5.1m (2024: £4.1m) are primarily due to increases in surveying professional indemnity provisions (£2.0m), restructuring costs in Financial Services (£0.8m), Central CEO and CFO change costs (£0.7m), restructuring costs in Estate Agency Franchising (£0.7m), costs incurred as a result of the administration of TenetLime's seller, Tenet Group Limited (£0.6m) and the reduction in deferred consideration receivable for businesses sold to Pivotal Growth in H1 2023 (£0.2m). \n   \n Other gains \n Total other operating gains were £1.1m (2024: gains of £0.5m). This primarily included £0.8m relating to the research and development expenditure tax credit across all three Divisions relating to FY23 and FY24 and the movement in the fair value of a financial asset having been reassessed at 31 December 2025 as £0.6m (31 December 2024: £0.4m). \n   \n Share of profit from joint venture \n Our equity share of Pivotal Growth results improved to £0.8m profit (2024: £6k loss), as the joint venture continued to scale profitability, with 24 acquisitions to date. \n   \n Share-based payments \n The share-based payment charge of £1.6m in 2025 (2024: charge of £0.9m) comprises, a charge in the period of £1.8m (2024: £3.1m charge) for LTIP, SAYE and the all employee share schemes granted between 2022 to 2025, offset by a credit of £0.5m (2024: £2.2m credit) reflecting lapses. In addition, £0.3m of employer's NIC was recognised in relation to unexercised schemes during the year. The increase in the underlying share-based payment charge during the year was driven by the introduction of the 2025 LTIP scheme. \n   \n Amortisation of intangible assets \n Amortisation charge of £3.0m (2024: £3.0m), relates to amortisation of intangible software investment, franchise agreements and relationship assets. \n   \n Finance income \n Finance income decreased from the prior year to £2.5m (2024: £2.9m) due to less interest received on funds held on deposit of £1.0m (2024: £1.8m), the reduction in the unwind of discounting on contingent consideration payable balances of £0.7m, offset by interest on loan notes to the joint venture, Pivotal Growth, of £0.9m (2024: nil). \n   \n Finance costs \n Finance costs of £1.9m (2024: £1.7m) are related principally to the unwinding of discount on lease liabilities of £0.5m (2024: £0.5m), commitment and non-utilisation fees on the revolving credit facility of £0.7m (2024: £0.6m), fair value adjustment to loans receivable of £0.4m (2024: £0.3m) and £0.2m for the unwinding of discount on dilapidations provisions (2024: £0.2m). \n   \n Profit before tax \n Profit was £23.1m (2024: £23.1m 4 ). This remained broadly in line year-on-year due to lower net finance income of £0.5m (2024: £1.1m) combined with Group operating profit of £22.6m (2024: £21.9m 4 ). \n   \n Taxation \n The tax charge of £6.0m (2024: £5.2m) represents an effective tax rate of 26.1% (2024: 22.7%), which is marginally higher than the headline UK tax rate of 25.0% largely as a result of the calculated net effect of adjustments arising in respect of permanent adjustments or deferred tax not recognised including the prior period adjustment arising in respect of total tax. \n Deferred tax assets and liabilities are measured at 25.0% (2024: 25.0%), the tax rate that came into effect from 1 April 2023. \n   \n Discontinued operations 1 \n Loss of £0.04m (net of tax) in relation to an increase in the restructuring and administrative costs associated with the previously owned Estate Agency branch network (2024: loss of £0.4m). \n \n \n   \n Earnings per share \n   \n \n \n \n \n \n \n \n 2025 \n \n \n Restated 4 \n 2024 \n \n \n \n \n Earnings per share (pence) \n \n \n Basic \n \n \n Diluted \n \n \n Adjusted basic \n \n \n Adjusted basic diluted \n \n \n Basic \n \n \n Diluted \n \n \n Adjusted basic \n \n \n Adjusted basic diluted \n \n \n \n \n Continuing \n \n \n 16.6 \n \n \n 16.2 \n \n \n  - \n \n \n  - \n \n \n 17.4 \n \n \n 17.2 \n \n \n                  -   \n \n \n                  -   \n \n \n \n \n Discontinued \n \n \n (0.0) \n \n \n (0.0) \n \n \n  - \n \n \n - \n \n \n (0.4) \n \n \n (0.4) \n \n \n                  -   \n \n \n                  -   \n \n \n \n \n Total operations \n \n \n 16.6 \n \n \n 16.2 \n \n \n 24.4 \n \n \n 23.8 \n \n \n 17.0 \n \n \n 16.8 \n \n \n 21.1 \n \n \n 20.9 \n \n \n \n \n   \n Notes: \n 1.        Based on continuing operations unless otherwise stated. Following the conversion of the entire owned Estate Agency network to franchisees in 2023, this was classified as a discontinued operation and is now presented as such in the Financial Statements. Refer to note 6 to the Financial Statements \n 2.        Group (and Divisional) Underlying Operating Profit is before exceptional items, contingent consideration assets & liabilities, amortisation of intangible assets and share-based payments. Refer to note 5 to the Financial Statements for reconciliation of Group and Divisional Underlying Operating Profit to statutory operating profit/(loss) for continuing, discontinued and total operations \n 3.        Refer to note 34 to the Financial Statements \n 4.        Refer to note 35 to the Financial Statements \n   \n \n \n   \n Group Balance Sheet Review \n Goodwill \n 31 December 2025:  £16.9m (31 December 2024: £16.9m) \n The carrying value of goodwill relates to previous acquisitions in the Surveying & Valuation Division of £9.9m and Financial Services Division of £7.0m. \n Other intangible assets \n 31 December 2025: £29.9m (31 December 2024: £29.9m) \n Additions of £3.1m intangible assets were driven by the increased investment in AVM software in the Surveying and Valuation Division of £1.9m, and development of new and existing CRM within Financial Services of £1.1m. Total amortisation of £3.0m was charged in the year (2024: £3.0m). The carrying value of all franchise agreements was £10.0m at 31 December 2025 (2024: £10.9m), the acquired relationship assets were £7.7m (2024: £8.5m) and software assets of £5.2m (2024: £3.6m). Brand intangibles of £6.9m remained unchanged during the year. \n Property, plant and equipment (PPE) and right-of-use assets (RoU assets) \n 31 December 2025: £7.7m (31 December 2024: £6.4m). \n Capital expenditure on owned PPE was £1.2m (2024: £0.9m), reflecting ongoing IT investment across all Divisions. There has also been £3.6m of additions in new offices and car lease agreements. \n Financial assets (total current and non-current) \n 31 December 2025: £1.0m (31 December 2024: £6.6m) \n Contingent consideration receivable \n 31 December 2025: £nil (31 December 2024: £5.8m) \n During 2023 the Group disposed of Group First, RSC and Embrace D2C brokerage businesses to Pivotal Growth, with contingent consideration receivable in 2025. In September 2025, the Group received final contingent consideration of £5.5m after working capital adjustments of £0.2m. \n Equity instruments in unlisted companies \n 31 December 2025: £1.0m (31 December 2024: £0.8m) \n There was a £0.2m increase in the fair value of units held in The Openwork Partnership LLP of £0.6m at 31 December 2025 (31 December 2024: £0.4m). The fair value has been reassessed as £0.6m at 31 December 2025, with our valuation based on an estimated strike price which has been calculated using the strike price from most recently executed trading windows. \n There was no change in the fair value of shares held in Twenty7tec Group Limited at 31 December 2025, remained at £0.4m (31 December 2024: £0.4m). \n Loans to joint venture \n 31 December 2025: £13.8m (31 December 2024: £7.6m) \n In December 2024, the Group provided funding of £7.6m to its joint venture Pivotal Growth in the form of 10% unsecured loan notes with additions of £5.3m in the year. No repayments were made in 2025 with £0.9m of interest income recognised during the period. In January 2026, Mottram Topco repaid £10.6m out of the £13.8m loan notes outstanding in cash. £3.2m were converted to equity investment in Mottram Topco. \n   \n \n   \n Investment in joint venture \n 31 December 2025: £15.0m (31 December 2024: £11.6m) \n Our 46.8% interest in the Pivotal Growth joint venture is accounted for using the equity method. The carrying value reflects the movement in our equity investment during the period of £2.6m, together with our share of profit after tax of £0.8m. \n Investment in subleases (total current and non-current) \n 31 December 2025 £0.3m (31 December 2024: £0.8m) \n The Group is an intermediate lessor, following the Estate Agency conversion to a wholly franchised model with the carrying value now at £0.3m. \n Loans to franchisees and appointed representatives (network firms) \n 31 December 2025: £3.7m (31 December 2024: £1.8m 1 ) \n Various sized working capital loan facility agreements are in place with franchisees of the Estate Agency Franchising Division which has availability over a range of periods from 31 December 2024 to 31 December 2025, are repayable in full within 24 months from the respective period end and may bear fixed rate interest. In addition, during the year, the Group issued loans to franchisees for lettings book acquisitions. At 31 December 2025, £3.1m in principal loan amounts were drawn down/issued (31 December 2024: £1.4m). \n Loans to Financial Services appointed representatives are granted in certain circumstances to support brokers upon joining the PRIMIS network and were £0.6m as at 31 December 2025 (31 December 2024: £0.5m). \n Financial liabilities (total current and non-current) \n 31 December 2025: £9.8m (31 December 2024: £9.1m) \n Contingent consideration liabilities \n 31 December 2025: £3.3m (31 December 2024: £3.3m) \n Contingent consideration liabilities relate solely to the cost of acquiring the intangible relationship assets in TenetLime in February 2024, with the consideration of £3.3m adjusted at 31 December 2025 for the latest update of retained advisers and discounting. \n IFRS 16 lease financial liabilities \n 31 December 2025: £6.5m (31 December 2024: £5.8m) \n The movement in the period reflects payment of lease liabilities of £3.0m and disposals on assignment to franchisees of £0.3m, offset by new lease additions of £3.5m. \n Provision for liabilities (total current and non-current) \n 31 December 2025: £11.3m (31 December 2024: £10.4m 1 ) \n PI claim provisions of £4.3m (31 December 2024: £2.6m) include the Surveying & Valuation PI provision of £3.6m (31 December 2024: £1.9m) and the Financial Services PI provision of £0.7m (31 December 2024: £0.4m). The Group has recognised an asset of £0.3m against received claims in other debtors at 31 December 2025 (31 December 2024: £0.3m). \n Dilapidations and restructuring provisions relating to the Estate Agency Franchising Division following the wholesale franchising in 2023, totalled £5.3m at 31 December 2025 (31 December 2024: £6.0m). \n 1.        Refer to note 35 to the Financial Statements \n Group Statement of Cash Flows \n 31 December 2025: net cash £27.8m (31 December 2024: net cash £32.4m) \n Operating cash flows before movements in working capital were £33.5m (2024: £30.4m), reflecting the higher underlying operating profits generated in 2025. \n The Group is highly cash generative and ordinarily achieves a cash flow conversion rate of 75-100%. The ratio in 2025 was 91% (2024: 112%), which sits inside the normative range. \n Overall net decrease in cash and cash equivalents in the year was £4.6m. After the operating cash flow of £33.5m, movements in working capital consumed £1.8m, income taxes, exceptional costs and leases totalled £9.4m outflow, net cash expended on investing activities was £7.1m, and net cash expended in financing activities was £19.8m. The largest area of outflow was dividends paid of £11.8m. \n Movements in working capital in the year were an outflow of £1.8m (2024: £2.7m inflow), with the change impacted by net working capital movements at the end of December 2024. \n Key cash inflows in 2025 included: \n •     Receipt of contingent consideration of £5.5m (2024: £0.2m) in relation to the disposals of EFS, Group First and RSC in H1 2023 to Pivotal Growth. \n •     Franchisee and appointed representative loans repaid of £1.8m (2024: £1.7m). \n •     Interest received of £1.0m from bank deposits (2024: £1.8m). \n Key cash outflows in 2025 included: \n •     Capital expenditure on PPE and intangibles of £4.3m (2024: £3.0m). \n •     Exceptional costs paid of £3.9m (2024: £3.0m). \n •     Payment of the 2024 final dividend and 2025 interim dividend of £11.8m (2024: £11.8m) and the repurchase of shares under the share buyback programme of £5.0m (2024: £0.8m). \n •     Loans to our joint venture, Pivotal Growth of £5.3m (2024: £7.6m) and investment in equity of our joint venture of £2.6m (2024: £2.2m). \n •     Loans to franchisees to support lettings book acquisitions and loans to appointed representatives of £3.8m (2024: £1.7m). \n •     Corporation tax paid in 2025 of £5.0m as the Group returns to more normalised taxable profits (2024: £1.8m). \n Bank facilities \n In January 2025, LSL agreed an amendment and restatement of its banking facility, putting in place a £60m committed revolving credit facility, with a maturity date of January 2030, replacing a £60m facility maturing in May 2026. The terms have remained materially the same as the previous facility, provided by the same syndicate members as before, Barclays Bank UK plc, NatWest Bank plc and Santander UK plc. For further flexibility to support growth, the facility retains a £30m accordion, on request by LSL, subject to bank approval. \n International Accounting Standards (IAS) \n The Financial Statements for the period ended 31 December 2025 have been prepared in accordance with UK-adopted IAS. \n \n \n   \n Business & financial review \n \n \n \n \n 2025 Profit & Loss (£m) \n \n \n 2025 \n \n \n Restated 1 \n 2024 \n \n \n Var \n \n \n \n \n Divisional group revenue \n \n \n \n \n \n \n \n \n \n \n \n \n \n Surveying & Valuation \n \n \n 107.6 \n \n \n 97.8 \n \n \n 10% \n \n \n \n \n Financial Services \n \n \n 48.8 \n \n \n 48.4 \n \n \n 1% \n \n \n \n \n Estate Agency Franchising \n \n \n 26.5 \n \n \n 27.1 \n \n \n (2%) \n \n \n \n \n Group revenue \n \n \n 182.9 \n \n \n 173.3 \n \n \n 6% \n \n \n \n \n Divisional underlying operating profit/(loss) \n \n \n \n \n \n \n \n \n \n \n \n \n \n Surveying & Valuation \n \n \n 23.5 \n \n \n 22.5 \n \n \n 4% \n \n \n \n \n Financial Services \n \n \n 11.0 \n \n \n 8.6 \n \n \n 28% \n \n \n \n \n Estate Agency Franchising \n \n \n 8.3 \n \n \n 7.8 \n \n \n 6% \n \n \n \n \n Central costs \n \n \n (10.2) \n \n \n (11.1) \n \n \n 8% \n \n \n \n \n Group underlying operating profit from continuing operations \n \n \n 32.6 \n \n \n 27.8 \n \n \n 17% \n \n \n \n \n Divisional operating profit/(loss) \n \n \n \n \n \n \n \n \n \n \n \n \n \n Surveying & Valuation \n \n \n 20.8 \n \n \n 22.1 \n \n \n (6%) \n \n \n \n \n Financial Services \n \n \n 6.3 \n \n \n 4.6 \n \n \n 37% \n \n \n \n \n Estate Agency Franchising \n \n \n 6.4 \n \n \n 6.6 \n \n \n (3%) \n \n \n \n \n Central costs \n \n \n (10.9) \n \n \n (11.3) \n \n \n 4% \n \n \n \n \n Group operating profit from continuing operations \n \n \n 22.6 \n \n \n 21.9 \n \n \n 3% \n \n \n \n \n Estate Agency - discontinued operations \n \n \n (0. 0 ) \n \n \n (0.5) \n \n \n 100 % \n \n \n \n \n Group operating profit from total operations \n \n \n 22.6 \n \n \n 21.4 \n \n \n 6% \n \n \n \n \n   \n 1.        Refer to note 35 to the Financial Statements \n \n \n   \n Surveying & Valuation Division \n Divisional revenue increased to £107.6m, an increase of 10% from the prior year (2024: £97.8m). Excluding Asset Management, Surveying & Valuation revenue was £102.1m, an increase of 10% (2024: £92.5m), reflecting both the 9% increase in jobs performed and the 1% increase in income per job. Continuing to grow surveyor capacity and capabilities, along with the introduction of an AVM model, the market share of surveyor led valuations was c.39% (2024: 38%). The B2C business continued to grow in the period, with 2025 revenue of £7.8m representing a 16% increase on 2024. \n Surveying Underlying Operating Profit increased by 4% to £23.5m (2024: £22.5m), despite continued investment in technology and surveyor capacity. \n Asset Management revenues grew by 6% in the year to £5.5m (2024: £5.3m), reflecting a market that is slowly returning to long-run levels of activity. \n Highlights \n •     Overall strong performance reflecting the benefit of 100% contract retention, increased allocations with improved terms and several key new contract wins. \n •     Surveyor utilisation rates returning to historic highs. \n •     Mortgage approvals 1 were 10% higher than 2024, driven by 2% higher purchase approvals and remortgage and other approvals 22% higher. \n •     B2C revenue increased by 16% to £7.8m (2024: £6.8m), reflecting both the 9% increase in jobs performed and the 6% increase in income per job on the comparative period last year. \n •     Asset Management revenues increased by 6% to £5.5m (2024: £5.3m) with profit up 13% to £2.6m (2024: £2.3m). \n •     Continued investment in technology, supporting the establishment of digital and data as core enablers, opening new revenue opportunities and to meet lender client needs. \n •     AVM successfully launched with first commercial contract operationalised in Q4 2025. Significant partner interest in future development and adoption. \n •     On a statutory basis , operating profit was £20.8m (2024: £22.1m ). Reduction driven by increase in surveying professional indemnity provision recognised as exceptional costs during the year \n   \n 1 Approvals for lending secured on dwellings, Bank of England Table A5.4 (31 January 2026) \n \n Financial Services Division \n The Financial Services Division is reported in two business lines: our core Financial Services network business comprising PRIMIS and TMA mortgage club, and our share of profit after tax of the Pivotal Growth Joint Venture. \n Total revenue was £48.8m (2024: £48.4m) and underlying operating profit substantially increased by 28% to £11.0m (2024: £8.6m). This reflects a renewed focus on smaller, mortgage-led financial services businesses that are best placed to benefit from our platform and service offering and a positive contribution from the Pivotal Growth Joint Venture. \n New mortgage lending increased by 23% to £35bn (2024: £28bn) whilst the total UK new mortgage lending market 1 grew by 20% to £291bn (2024: £242bn). As a result, the LSL share of UK purchase and remortgage market increased to 12.0% (2024: 11.8%). \n The PRIMIS network enjoys a leading position in the provision of services to independent mortgage brokers. At 31 December 2025, PRIMIS members totalled 2,195 advisers who sell mortgage and protection (31 December 2024: 2,282). \n Our share of profits after tax in the Pivotal Growth Joint Venture was £0.8m (2024: losses of £0.0m). The trading EBITDA of Pivotal Growth (before transactional acquisition costs) was materially ahead of last year. \n On a statutory basis, operating profit was £6.3m (2024: £4.7m). The increase was driven by lower net exceptional costs of £1.1m in 2025 (2024: £2.4m) \n The Financial Services network business has a regulatory capital requirement which represents 2.5% of its regulated revenues. The regulatory capital requirement was £6.1m at 31 December 2025 (31 December 2024: £6.4m), with a surplus of £27.8m (31 December 2024: £27.6m). \n Highlights \n •     Phase 1 of a significant platform technology enhancement programme successfully completed. Enhanced platform functionality will improve efficiency and sales performance of PRIMIS advisers with phased deployment due to complete by the end of 2026. \n •     Underlying operating margin was 23% (2024: 18%) reflecting the strategic focus on composite advisors and its impact on operational efficiency. The statutory operating margin was 13% (2024: 10%). \n •     The strategic decision to focus on composite advisors in place of protection only firms, resulted in a 5% reduction in network firms to 1,049 as at 31 December 2025 (2024: 1,108). \n •     Adviser mortgage revenue increased by 19% to £20.0m in a market which was c.21% higher. The weighting of margin dilutive product transfers in the refinancing market remained above the long-term average. \n •     TenetLime profit contribution was in line with expectations, with the acquisition delivering returns in excess of the cost of capital. \n •     On a statutory basis, operating profit was £6.3m (2024: £4.6m), materially ahead of last year. \n   \n   \n 1 New mortgage lending by purpose of loan, Bank of England Table A5.3 - (31 January 2026) \n   \n \n \n   \n Estate Agency Franchising Division \n The Estate Agency Franchise business revenue was £26.5m (2024: £27.1m), with the decrease entirely due to the LSL Land and New Homes business, due to the Ministry of Defence's decision to bring a significant contract back in house. \n Supporting the growth of franchisees is of paramount importance, including the provision of loans to facilitate letting book acquisitions. In 2025, loans were granted enabling the acquisition of ten lettings books, adding 1,400 properties to the lettings portfolio. The average lettings royalties income per managed property increased by c.+3% with total number of properties in line with the comparable period last year at 37,451 (2024: 37,462). \n The Estate Agency Franchise business continued to deliver a robust residential sales performance, with sales related royalties increasing 12% year-on-year in a market which increased by 10% 1 . \n Highlights \n •     Estate Agency Franchising underlying operating profit was £8.3m (2024: £7.8m). \n •     Underlying operating margin improved to 31% (2024: 29%) underpinned by cost leverage and operational efficiencies as the business continues to scale. \n •     The number of properties under franchisees' management remained stable at 37,451 (31 December 2024: 37,462). \n •     Total of 293 branches at 31 December 2025 (31 December 2024: 291), representing over 65% UK postcode coverage. \n •     On a statutory basis, operating profit was £6.4m (2024: £6.6m). Reduction driven by exceptional restructuring costs incurred in the Land and New Homes business. \n 1 Number of residential property transaction completions with value £40,000 or above, HMRC (30 January 2026) \n Principal risks and uncertainties \n Our principal risks and uncertainties, that the Board has assessed as being the most significant risks that may adversely affect our business strategy, financial position or future performance, are set out in the Group's Annual Report and Accounts.  \n  In summary, these are linked to the impact on the Group of: \n 1. The cyclicality of the UK housing market and impact of transaction volumes, lender behaviour and availability and pricing of mortgage finance. \n 2. Market disruption and competitive dynamics. \n 3. Execution of strategy, including execution of transformation initiatives, capital allocation and operational change. \n 4. Claims arising from not meeting standards for our professional services. \n 5.  Significant falls in business volume relating to B2B relationships. \n 6. Cyber, data and operational resilience. \n 7.  Regulatory compliance and responding to regulatory changes. \n 8. Credit risk (broker insolvency/commission clawback and lender exposure). \n 9. Colleague resources, talent and expertise. \n Group Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2025 \n \n \n \n \n \n \n \n \n \n \n 2025 \n \n \n Restated* \n 2024 \n \n \n \n \n   \n \n \n Note \n \n \n £'000 \n \n \n £'000 \n \n \n \n \n Continuing operations: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Revenue \n \n \n 3 \n \n \n 182,945 \n \n \n 173,318  \n \n \n \n \n Operating expenses: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n  Employee costs  \n \n \n 15 \n \n \n (109,088) \n \n \n  (105,200) \n \n \n \n \n  Depreciation on property, plant and equipment and right-of-use assets \n \n \n 18 \n \n \n (3,369) \n \n \n  (3,160) \n \n \n \n \n  Expected credit loss charge \n \n \n 21 \n \n \n (3,543) \n \n \n (2,061) \n \n \n \n \n  Other operating costs \n \n \n \n \n \n (37,173) \n \n \n  (35,638) \n \n \n \n \n  Other gains \n \n \n 3 \n \n \n 1,116 \n \n \n  532 \n \n \n \n \n  Gains/(losses) from joint venture \n \n \n 20 \n \n \n 798 \n \n \n  (6) \n \n \n \n \n  Share-based payments charge \n \n \n 15 \n \n \n (1,597) \n \n \n   (920) \n \n \n \n \n  Amortisation of intangible assets \n \n \n 17 \n \n \n (3,032) \n \n \n  (2,988) \n \n \n \n \n  Exceptional gains \n \n \n 9 \n \n \n 571 \n \n \n 1,745 \n \n \n \n \n  Exceptional costs \n \n \n 9 \n \n \n (5,066) \n \n \n  (4,109) \n \n \n \n \n  Contingent consideration payable \n \n \n \n \n \n - \n \n \n  426 \n \n \n \n \n Group operating profit \n \n \n 4 \n \n \n 22,562 \n \n \n 21,939 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Finance income \n \n \n 7 \n \n \n 2,451 \n \n \n 2,868 \n \n \n \n \n Finance cost \n \n \n 8 \n \n \n (1,937) \n \n \n (1,741) \n \n \n \n \n Net finance income \n \n \n \n \n \n 514 \n \n \n 1,127 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Profit before tax \n \n \n \n \n \n 23,076 \n \n \n 23,066 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Taxation charge \n \n \n 16 \n \n \n (5,994) \n \n \n (5,247) \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Profit for the year from continuing operations \n \n \n \n \n \n 17,082 \n \n \n 17,819 \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Discontinued operations: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Loss for the year from discontinued operations \n \n \n 6 \n \n \n (42) \n \n \n (377) \n \n \n \n \n Profit for the year \n \n \n \n \n \n 17,040 \n \n \n 17,442 \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Attributable to: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Owners of the parent \n \n \n \n \n \n 16,960 \n \n \n 17,409 \n \n \n \n \n Non-controlling interest \n \n \n \n \n \n 80 \n \n \n 33 \n \n \n \n \n   \n \n \n \n \n \n 17,040 \n \n \n 17,442 \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Earnings per share from continuing operations (expressed as pence per share): \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Basic \n \n \n 12 \n \n \n 16.6 \n \n \n 17.4 \n \n \n \n \n Diluted \n \n \n 12 \n \n \n 16.2 \n \n \n 17.2 \n \n \n \n \n   \n \n \n \n \n Earnings per share from total operations (expressed as pence per share): \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Basic \n \n \n 12 \n \n \n 16.6 \n \n \n 17.0 \n \n \n \n \n Diluted \n \n \n 12 \n \n \n 16.2 \n \n \n 16.8 \n \n \n \n \n   \n *See note 35 for restatement \n   \n There was no other comprehensive income during the year ended 31 December 2025 (2024: £nil). \n \n Group Balance Sheet                                                                                                               \n as at 31 December 2025 \n \n \n \n \n \n \n \n \n \n \n 31 December 2025 \n \n \n Restated* \n 31 December 2024 \n \n \n Restated* \n 1 January 2024 \n \n \n \n \n \n \n \n Note \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n \n \n Non-current assets \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Goodwill \n \n \n 17 \n \n \n 16,855 \n \n \n 16,855 \n \n \n 16,855 \n \n \n \n \n Other intangible assets \n \n \n 17 \n \n \n 29,881 \n \n \n 29,861 \n \n \n 21,461 \n \n \n \n \n Property, plant and equipment and right-of-use assets \n \n \n 18 \n \n \n 7,700 \n \n \n 6,400 \n \n \n 6,918 \n \n \n \n \n Financial assets \n \n \n 19 \n \n \n 963 \n \n \n 762 \n \n \n 5,407 \n \n \n \n \n Deferred tax asset \n \n \n 16 \n \n \n - \n \n \n - \n \n \n 166 \n \n \n \n \n Investment in subleases \n \n \n 19 \n \n \n 131 \n \n \n 447 \n \n \n 1,757 \n \n \n \n \n Investment in joint venture \n \n \n 20 \n \n \n 14,988 \n \n \n 11,585 \n \n \n 9,359 \n \n \n \n \n Contract asset \n \n \n \n \n \n - \n \n \n - \n \n \n 329 \n \n \n \n \n Loans to franchisees and appointed representatives \n \n \n 19 \n \n \n 1,823 \n \n \n 902 \n \n \n 1,655 \n \n \n \n \n Total non-current assets \n \n \n \n \n \n 72,341 \n \n \n 66,812 \n \n \n 63,907 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Current assets \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Trade and other receivables \n \n \n 21 \n \n \n 25,026 \n \n \n 24,161 \n \n \n 22,446 \n \n \n \n \n Financial assets \n \n \n 19 \n \n \n - \n \n \n 5,772 \n \n \n 54 \n \n \n \n \n Contract asset \n \n \n \n \n \n - \n \n \n - \n \n \n 40 \n \n \n \n \n Loans to joint venture \n \n \n 19 \n \n \n 13,840 \n \n \n 7,607 \n \n \n - \n \n \n \n \n Investment in subleases \n \n \n 19 \n \n \n 164 \n \n \n 385 \n \n \n 1,582 \n \n \n \n \n Current tax assets \n \n \n 16 \n \n \n 725 \n \n \n 846 \n \n \n 2,183 \n \n \n \n \n Loans to franchisees and appointed representatives \n \n \n 19 \n \n \n 1,827 \n \n \n 867 \n \n \n 444 \n \n \n \n \n Cash and cash equivalents \n \n \n 22 \n \n \n 67,050 \n \n \n 60,663 \n \n \n 58,110 \n \n \n \n \n Total current assets \n \n \n \n \n \n 108,632 \n \n \n 100,301 \n \n \n 84,859 \n \n \n \n \n Total assets \n \n \n \n \n \n 180,973 \n \n \n 167,113 \n \n \n 148,766 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Current liabilities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Financial liabilities \n \n \n 24 \n \n \n (5,613) \n \n \n (5,595) \n \n \n (3,320) \n \n \n \n \n Trade and other payables \n \n \n 23 \n \n \n (36,810) \n \n \n (37,493) \n \n \n (31,232) \n \n \n \n \n Provisions for liabilities \n \n \n 25 \n \n \n (6,266) \n \n \n (6,552) \n \n \n (5,903) \n \n \n \n \n Bank overdrafts \n \n \n 22 \n \n \n (39,253) \n \n \n (28,264) \n \n \n (23,139) \n \n \n \n \n Total current liabilities \n \n \n \n \n \n (87,942) \n \n \n (77,904) \n \n \n (63,594) \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Non-current liabilities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Financial liabilities \n \n \n 24 \n \n \n (4,148) \n \n \n (3,491) \n \n \n (5,085) \n \n \n \n \n Deferred tax liability \n \n \n 16 \n \n \n (1,999) \n \n \n (1,642) \n \n \n - \n \n \n \n \n Provisions for liabilities \n \n \n 25 \n \n \n (5,002) \n \n \n (3,869) \n \n \n (5,872) \n \n \n \n \n Total non-current liabilities \n \n \n \n \n \n (11,149) \n \n \n (9,002) \n \n \n (10,957) \n \n \n \n \n Total liabilities \n \n \n \n \n \n (99,091) \n \n \n (86,906) \n \n \n (74,551) \n \n \n \n \n Net assets \n \n \n \n \n \n 81,882 \n \n \n 80,207 \n \n \n 74,215 \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Equity \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Share capital \n \n \n 27 \n \n \n 210 \n \n \n 210 \n \n \n 210 \n \n \n \n \n Share premium account \n \n \n 28 \n \n \n 5,629 \n \n \n 5,629 \n \n \n 5,629 \n \n \n \n \n Share-based payment reserve \n \n \n 28 \n \n \n 3,355 \n \n \n 2,634 \n \n \n 3,564 \n \n \n \n \n Shares held by employee benefit trust and share incentive plan \n \n \n 2,28 \n \n \n (1,316) \n \n \n (1,510) \n \n \n (2,871) \n \n \n \n \n Treasury shares \n \n \n 28 \n \n \n (9,876) \n \n \n (4,831) \n \n \n (3,983) \n \n \n \n \n Fair value reserve \n \n \n 28 \n \n \n (385) \n \n \n (385) \n \n \n (385) \n \n \n \n \n Retained earnings \n \n \n \n \n \n 84,458 \n \n \n 78,733 \n \n \n 72,357 \n \n \n \n \n Total equity attributable to owners of the parent \n \n \n \n \n \n 82,075 \n \n \n 80,480 \n \n \n 74,521 \n \n \n \n \n Non-controlling interest \n \n \n \n \n \n (193) \n \n \n (273) \n \n \n (306) \n \n \n \n \n Total equity \n \n \n \n \n \n 81,882 \n \n \n 80,207 \n \n \n 74,215 \n \n \n \n \n   \n *See note 35 for restatement \n   \n \n   \n Group Statement of Cash Flows \n for the year ended 31 December 2025 \n \n \n \n \n \n \n \n Note \n \n \n   \n 2025 \n \n \n Restated* \n 2024 \n \n \n \n \n   \n \n \n   \n \n \n £'000 \n \n \n £'000 \n \n \n \n \n Profit before tax from continuing operations \n \n \n   \n \n \n 23,076 \n \n \n 23,066 \n \n \n \n \n Loss before tax from discontinued operations \n \n \n 6 \n \n \n (8) \n \n \n (518) \n \n \n \n \n Profit before tax \n \n \n   \n \n \n 23,068 \n \n \n 22,548 \n \n \n \n \n Adjustments for: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Exceptional costs                                                                                                                                 \n \n \n 6,9 \n \n \n 5,386 \n \n \n 4,187 \n \n \n \n \n Exceptional gains \n \n \n 9 \n \n \n (571) \n \n \n (1,745) \n \n \n \n \n Contingent consideration payable \n \n \n 24 \n \n \n - \n \n \n (426) \n \n \n \n \n Depreciation of tangible assets \n \n \n 18 \n \n \n 3,369 \n \n \n 3,160 \n \n \n \n \n Amortisation of intangible assets \n \n \n 17 \n \n \n 3,032 \n \n \n 2,988 \n \n \n \n \n Share-based payments \n \n \n 15 \n \n \n 1,597 \n \n \n 920 \n \n \n \n \n Loss on disposal of property, plant and equipment and right-of-use assets \n \n \n \n \n \n - \n \n \n (31) \n \n \n \n \n (Profit)/loss from joint venture \n \n \n 20 \n \n \n (798) \n \n \n 6 \n \n \n \n \n Other gains \n \n \n 3 \n \n \n (1,116) \n \n \n (482) \n \n \n \n \n Decrease in contract assets \n \n \n \n \n \n - \n \n \n 368 \n \n \n \n \n Finance income \n \n \n 7 \n \n \n (2,451) \n \n \n (2,868) \n \n \n \n \n Finance costs \n \n \n 8 \n \n \n 1,937 \n \n \n 1,741 \n \n \n \n \n Operating cash flows before exceptional items and movements in working capital \n \n \n   \n \n \n 33,453 \n \n \n 30,367 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Movements in working capital \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Increase in trade and other receivables \n \n \n \n \n \n (530) \n \n \n (1,386) \n \n \n \n \n (Decrease)/increase in trade and other payables \n \n \n \n \n \n (2,282) \n \n \n 5,518 \n \n \n \n \n Increase/(decrease) in provisions \n \n \n \n \n \n 1,472 \n \n \n (1,482) \n \n \n \n \n \n \n \n \n \n \n (1,340) \n \n \n 2,650 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Cash generated from operations before exceptional items \n \n \n   \n \n \n 32,113 \n \n \n 33,017 \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Interest paid (leases) \n \n \n 26 \n \n \n (534) \n \n \n (455) \n \n \n \n \n Interest received (leases) \n \n \n 26 \n \n \n 29 \n \n \n 96 \n \n \n \n \n Income taxes paid \n \n \n \n \n \n (4,968) \n \n \n (1,799) \n \n \n \n \n Exceptional costs paid \n \n \n \n \n \n (3,910) \n \n \n (3,066) \n \n \n \n \n Net cash generated from operating activities \n \n \n   \n \n \n 22,730 \n \n \n 27,793 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Cash flows used in investing activities \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Interest received \n \n \n 7 \n \n \n 1,023 \n \n \n 1,752 \n \n \n \n \n Payment of contingent consideration \n \n \n 24 \n \n \n - \n \n \n (65) \n \n \n \n \n Receipt of contingent consideration \n \n \n 19 \n \n \n 5,542 \n \n \n 155 \n \n \n \n \n Investment in joint venture \n \n \n 20 \n \n \n (2,605) \n \n \n (2,232) \n \n \n \n \n Proceeds from sale of financial assets \n \n \n 19 \n \n \n - \n \n \n 119 \n \n \n \n \n Franchisees and appointed representatives loans granted \n \n \n 19 \n \n \n (3,768) \n \n \n (1,659) \n \n \n \n \n Franchisees and appointed representatives loans repaid \n \n \n 19 \n \n \n 1,832 \n \n \n 1,702 \n \n \n \n \n Receipt of lease income \n \n \n 26 \n \n \n 489 \n \n \n 1,046 \n \n \n \n \n Purchase of property, plant and equipment \n \n \n 18 \n \n \n (1,241) \n \n \n (939) \n \n \n \n \n Purchase of intangible assets \n \n \n 17 \n \n \n (3,052) \n \n \n (2,092) \n \n \n \n \n Loans to joint venture \n \n \n 19 \n \n \n (5,301) \n \n \n (7,607) \n \n \n \n \n Purchase of relationship asset \n \n \n 17 \n \n \n - \n \n \n (5,695) \n \n \n \n \n Cash acquired on purchase of relationship asset \n \n \n \n \n \n - \n \n \n 503 \n \n \n \n \n Net cash expended on investing activities \n \n \n   \n \n \n (7,081) \n \n \n (15,012) \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Cash flows used in financing activities \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Refinance costs \n \n \n   \n \n \n (543) \n \n \n - \n \n \n \n \n Commitment and non-utilisation fees on RCF \n \n \n   \n \n \n (473) \n \n \n - \n \n \n \n \n Repurchase of treasury shares \n \n \n \n \n \n (5,045) \n \n \n (848) \n \n \n \n \n Proceeds from exercise of share options \n \n \n \n \n \n 46 \n \n \n 173 \n \n \n \n \n Payment of lease liabilities \n \n \n 14 \n \n \n (2,486) \n \n \n (2,895) \n \n \n \n \n Dividends paid \n \n \n 13 \n \n \n (11,750) \n \n \n (11,783) \n \n \n \n \n Net cash expended in financing activities \n \n \n   \n \n \n (20,251) \n \n \n (15,353) \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Net decrease in cash and cash equivalents \n \n \n \n \n \n (4,602) \n \n \n (2,572) \n \n \n \n \n Cash and cash equivalents at the beginning of the year \n \n \n 22 \n \n \n 32,399 \n \n \n 34,971 \n \n \n \n \n Cash and cash equivalents at the end of the year \n \n \n 22 \n \n \n 27,797 \n \n \n 32,399 \n \n \n \n \n   \n *See note 35 for restatement \n \n \n \n Group Statement of Changes in Equity \n for the year ended 31 December 2025 \n \n \n \n \n \n \n \n   \n   \n Share \n  capital \n \n \n   \n Share premium account \n \n \n Share- based payment reserve \n \n \n   \n   \n Shares held by EBT and SIP \n \n \n   \n   \n Treasury shares \n \n \n   \n   \n Fair value reserve \n \n \n   \n   \n Retained earnings \n \n \n   \n   \n Equity attributable to owners of the parent \n \n \n   \n   \n Non-controlling interest \n \n \n   \n   \n Total \n  equity \n \n \n \n \n \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n \n \n At 1 January 2025 (restated) \n \n \n 210 \n \n \n 5,629 \n \n \n 2,634 \n \n \n (1,510) \n \n \n (4,831) \n \n \n (385) \n \n \n 78,733 \n \n \n 80,480 \n \n \n (273) \n \n \n 80,207 \n \n \n \n \n Profit for the year \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 16,960 \n \n \n 16,960 \n \n \n 80 \n \n \n 17,040 \n \n \n \n \n Total comprehensive income for the year \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 16,960 \n \n \n 16,960 \n \n \n 80 \n \n \n 17,040 \n \n \n \n \n   \n Transactions with owners in their capacity \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Shares repurchased into treasury \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (5,045) \n \n \n - \n \n \n - \n \n \n (5,045) \n \n \n - \n \n \n (5,045) \n \n \n \n \n Exercise of options \n \n \n - \n \n \n - \n \n \n (183) \n \n \n 194 \n \n \n - \n \n \n - \n \n \n 107 \n \n \n 118 \n \n \n - \n \n \n 118 \n \n \n \n \n Vested share options lapsed during the year \n \n \n - \n \n \n - \n \n \n (408) \n \n \n - \n \n \n - \n \n \n - \n \n \n 408 \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Dividend paid \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (11,750) \n \n \n (11,750) \n \n \n - \n \n \n (11,750) \n \n \n \n \n Share-based payments \n \n \n - \n \n \n - \n \n \n 1,255 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1,255 \n \n \n - \n \n \n 1,255 \n \n \n \n \n Tax on share-based payments \n \n \n - \n \n \n - \n \n \n 57 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 57 \n \n \n - \n \n \n 57 \n \n \n \n \n At 31 December 2025 \n \n \n 210 \n \n \n 5,629 \n \n \n 3,355 \n \n \n (1,316) \n \n \n (9,876) \n \n \n (385) \n \n \n 84,458 \n \n \n 82,075 \n \n \n (193) \n \n \n 81,882 \n \n \n \n \n   \n During the period, 103,505 share options were exercised relating to LSL's various share option schemes resulting in the shares being sold by the Employee Benefit Trust. LSL received £0.1m on exercise of these options. \n \n \n   \n Group Statement of Changes in Equity \n for the year ended 31 December 2024 \n \n \n \n \n \n \n \n   \n   \n Share \n  capital \n \n \n   \n Share premium account \n \n \n Share- based payment reserve \n \n \n   \n   \n Shares held by EBT and SIP \n \n \n   \n   \n Treasury shares \n \n \n   \n   \n Fair value reserve \n \n \n   \n   \n Retained earnings \n \n \n   \n   \n Equity attributable to owners of the parent \n \n \n   \n   \n Non-controlling interest \n \n \n   \n   \n Total \n  equity \n \n \n \n \n \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n \n \n At 1 January 2024 \n \n \n 210 \n \n \n 5,629 \n \n \n 3,564 \n \n \n (2,871) \n \n \n (3,983) \n \n \n (385) \n \n \n 74,087 \n \n \n 76,251 \n \n \n (306) \n \n \n 75,945 \n \n \n \n \n Prior year restatements \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (1,730) \n \n \n (1,730) \n \n \n - \n \n \n (1,730) \n \n \n \n \n At 1 January 2024 (restated) \n \n \n 210 \n \n \n 5,629 \n \n \n 3,564 \n \n \n (2,871) \n \n \n (3,983) \n \n \n (385) \n \n \n 72,357 \n \n \n 74,521 \n \n \n (306) \n \n \n 74,215 \n \n \n \n \n Profit for the year \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 17,409 \n \n \n 17,409 \n \n \n 33 \n \n \n 17,442 \n \n \n \n \n Total comprehensive income for the year (restated) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 17,409 \n \n \n 17,409 \n \n \n 33 \n \n \n 17,442 \n \n \n \n \n   \n Transactions with owners in their capacity \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Shares repurchased into treasury \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (848) \n \n \n - \n \n \n - \n \n \n (848) \n \n \n - \n \n \n (848) \n \n \n \n \n Exercise of options \n \n \n - \n \n \n - \n \n \n (943) \n \n \n 1,361 \n \n \n - \n \n \n - \n \n \n (245) \n \n \n 173 \n \n \n - \n \n \n 173 \n \n \n \n \n Vested share options lapsed during the year \n \n \n - \n \n \n - \n \n \n (995) \n \n \n - \n \n \n - \n \n \n - \n \n \n 995 \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Dividend paid \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (11,783) \n \n \n (11,783) \n \n \n - \n \n \n (11,783) \n \n \n \n \n Share-based payments \n \n \n - \n \n \n - \n \n \n 920 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 920 \n \n \n - \n \n \n 920 \n \n \n \n \n Tax on share-based payments \n \n \n - \n \n \n - \n \n \n 88 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 88 \n \n \n - \n \n \n 88 \n \n \n \n \n At 31 December 2024 (restated) \n \n \n 210 \n \n \n 5,629 \n \n \n 2,634 \n \n \n (1,510) \n \n \n (4,831) \n \n \n (385) \n \n \n 78,733 \n \n \n 80,480 \n \n \n (273) \n \n \n 80,207 \n \n \n \n \n   \n During the period, 383,216 share options were exercised relating to LSL's various share option schemes resulting in the shares being sold by the Employee Benefit Trust. LSL received £0.2m on exercise of these options. \n \n Notes to the Group Financial Statements \n 1.     General information \n The above results and the accompanying notes do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. \n   \n Statutory Financial Statements for this year will be filed following the 2026 AGM and will be available on LSL's website: lslps.co.uk. The auditors have reported on these Financial Statements. Their report was unqualified and did not contain a statement under section 498 (2), (3) or (4) of the Companies Act 2006. The comparative financial information was audited by Ernst & Young LLP, and was derived from the statutory accounts for that year, on which an unmodified audit opinion was issued \n   \n 2. Accounting policies, judgements and estimates \n   \n 2.1 Basis of preparation \n The accounting policies which follow set out material information about the accounting policies which apply in preparing the Financial Statements for the year ended 31 December 2025. The policies have been applied consistently to all years presented. The Group's Financial Statements are presented in pound sterling, and all values are rounded to the nearest thousand pounds (£'000) except when otherwise indicated. \n   \n These Financial Statements have been prepared in accordance with UK-adopted International Accounting Standards. The Group Financial Statements have been prepared on a going concern basis under the historical cost convention and on a historical cost basis, except for certain debt and equity financial assets that have been measured at fair value. \n   \n In preparing the Financial Statements management has considered the impact of climate change, which is described in detail in our TCFD report. The Group has assessed climate-related risks, covering both physical risks and transition risks, in the short (0-3 years) to medium term (4-9 years). Climate-related matters have a relatively low impact on LSL's strategy and business model, and therefore there is a high degree of resilience. However, there are number of risks that may result in increased costs and have an impact on operations that, whilst unlikely to have a significant impact, are factored into our business and financial planning. Over the long-term (beyond 10 years), there could be physical risks, such as severe weather, flooding events, increase in temperature and rising sea levels. The risk to the Group's own premises as a result of climate change is considered low, the majority of our property portfolio is leased, and we would not expect significant climate-related costs during the remainder of our current lease terms. The impact of climate change in the medium to long-term is likely to be localised and have varying degrees of impact on the areas where we work and our revenue profile. This could have an impact on the carrying value of goodwill and investments. \n   \n 2.2 Basis of consolidation \n The consolidated Financial Statements comprise the Financial Statements of the Company and its subsidiaries as at 31 December 2025. The financial year represents the year from 1 January 2025 to 31 December 2025. \n   \n Subsidiaries \n Subsidiaries are consolidated from the date that control commences until the date control ceases. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. \n   \n Interest in joint venture \n The Group's share of the results of joint venture is included in the Group Statement of Profit or Loss and Other Comprehensive Income using the equity method of accounting. Investment in joint ventures are carried in the Group Balance Sheet at cost plus post-acquisition changes in the Group's share of the net assets of the entity, less any impairment in value. Goodwill relating to the joint venture is included in the carrying amount of the investment and is not tested for impairment individually. Unrealised gains and losses resulting from transactions between the Group and the joint venture are eliminated to the extent of the interest in the joint venture. \n   \n In addition, when there has been a change recognised directly in the equity of the joint venture, the Group recognises its share of any changes, when applicable, in the statement of changes in equity. \n   \n The Financial Statements of the joint venture are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group. \n \n \n   \n 2.3 Going concern \n   \n The Group's business activities, together with the factors likely to affect its future development, performance and position, are set out in the Financial and Divisional Reviews section of the Strategic Report. The financial position of the Group, its cash flows, liquidity position and policy for treasury and risk management are described in the Financial Review section of the Strategic Report. Details of the Group's borrowing facilities are set out in note 31. The Group's objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments; and its exposures to credit risk and liquidity risk are also set out in note 31. A description of the Group's principal risks and uncertainties and arrangements to manage these risks can be found in the Risk Management section of the Strategic Report. \n   \n The UK Corporate Governance Code requires 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 Group's forecast cash flows, liquidity, borrowing facilities and related covenant requirements and the expected operational activities of the Group. \n   \n The Group expects to continue to meet its day-to-day working capital requirements through cashflows generated by its trading activities and available cash resources (31 December 2025: £27.8m). The Group's banking facility, a £60 million committed revolving credit facility has a maturity date of January 2030. The Group has not currently utilised the facility leaving £60 million of available undrawn committed borrowing facilities in respect of which all conditions precedent had been met. The facility agreement includes financial covenants, including a minimum net debt to EBITDA ratio, which could result in the full facility not being available during the going concern period under downside scenarios. \n   \n 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 30 June 2027 (the going concern period). The Directors considered the period to June 2027, which exceeds the minimum required period, because it captures the covenant test that could significantly affect the use of the going concern basis. \n   \n In the scenarios, the Directors considered both current trading and external industry data. In developing a base case forecast the Directors have assumed inflation and interest rates of 2.5% and 4.0%, respectively, by the end of 2026 and 2.0% and 4.0%, respectively, by the end of 2027. \n   \n 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 significant reduction in market transaction volumes below the low point experienced during the Global Financial Crisis and in turn reduce Group revenue by approximately 25% compared to current performance. Under such a scenario, all available cash balances would be utilised and the facility would be unavailable due to financial 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 plausible threats to the Group's ability to continue through the going concern period. Therefore, the financial information has been prepared under the going concern basis of preparation. \n   \n In reaching its conclusion on the going concern assessment, the Board considered the findings of the work performed to support the Group's long-term viability statement. As noted in the Viability Statement, which is included in the Strategic Report of the Annual Report and Accounts 2025, this included assessing forecasts of severe but plausible downside scenarios related to our principal risks, notably the extent to which a severe downturn in the UK lending and housing markets, to below levels seen during the financial crisis in 2008, would affect the Group's base forecasts. \n   \n Having due regard to the scenarios above and after making appropriate enquiries, the Directors have a reasonable expectation with no material uncertainties that the Group and the Company have adequate resources to remain in operation to 30 June 2027. The Board have therefore continued to adopt the going concern basis in preparing the Annual Report and Accounts 2025. \n   \n 2.4 Revenue recognition \n Revenue is recognised under IFRS 15. The standard is based on a single model that distinguishes between promises to a customer that are satisfied at a point in time and those that are satisfied over time. Revenue is recognised when performance obligations are fulfilled. \n   \n Financial Services Division (excluding Linear Mortgage Network) \n Revenue comprises mortgage procuration fees and insurance commissions earned from the distribution of third-party mortgages, protection and general insurance products. Revenue from mortgage procuration fees is recognised at the point in time on completion of the related mortgage or remortgage transaction.  Revenue from insurance commissions is recognised at the point the related policy incepts and goes on risk, reflecting the transfer of service to the customer. Th e Group expects to earn from providing its services. This includes elements of variable consideration, mainly commission amounts that may be subject to clawback. These variable amounts are recognised only to the extent that it is highly probable they will not reverse. As the revenue streams described above involve a single service obligation in each case, the full transaction price is attributed to that service and no further allocation is required. \n   \n The Group (excluding Linear) acts as an agent under IFRS 15 and only recognises the Group ' s share of commission as revenue. As recognised by IFRS 15, assessing whether the Group is acting as a principal, or an agent requires judgement which can significantly affect the timing and amount of revenue recognised. The most judgemental aspect of this relates to the assessment of who the customer is for the Group. Considering all the factors of the transactions that result in revenue, it was concluded that the appointed representatives are the customers of the Group as opposed to the product providers. The Group has determined that it is acting as an agent and only recognises the Group ' s share of commission as revenue. The Group recognises a liability for commissions due to ARs. Where an AR has departed and the Group has no present obligation to settle the commission, the liability is derecognised. The resulting credit is recognised in the income statement in the period the obligation is extinguished. The assessment of principal versus agent is made for each distinct arrangement, based on whether the Group controls the specified service before it is transferred to the customer, in accordance with IFRS 15. \n   \n Financial Services Division (Linear Mortgage Network) \n Linear Mortgage Network (Linear) provides regulated mortgage and protection advice to retail customers through advisers operating within the PRIMIS network. PRIMIS authorises the regulated activities and provides the compliance framework and systems; Linear organises, supervises and remunerates advisers and controls service delivery to customers. Linear does not act as an insurer or lender; third-party providers underwrite insurance risk and advance loans. Linear is responsible for the advice delivered by its advisers and can accept/reject cases, it has discretion over adviser assignment and sales strategy and has control over allocation of pipeline commissions. Therefore, Linear acts as a principal under IFRS 15, and as such presents revenue on a gross basis. \n   \n Estate Agency Franchising Division \n The accounting policies for both franchise and residential services which includes new build residential sales and conveyancing services, are set out below. \n Franchise services: \n The Group's estate agency franchising arrangements grant franchisees the right to operate under the Group's trade name, trademarks, operating systems and manual, together with continuing brand stewardship, training access and network support. Under IFRS 15, the brand licences and the related ongoing support are bundled into a single performance obligation that provides a right to access the Group's intellectual property and is satisfied over time across the franchise term. \n   \n The Group earns sales-based royalties calculated as a stated percentage of the franchisee's sales and lettings income. These royalties relate predominantly to the licence of the Group's IP and therefore the sales-based royalty exception is applied under IFRS 15. Revenue on house sales is recognised at the point of exchange of contracts, and revenue on lettings, property management and ancillary services is recognised as those services are delivered by the franchisee. In addition, the Group earns fixed royalties which are recognised over time. \n   \n Residential services: \n New build residential sales: \n Revenue earned by the Group's new build residential sales business is recognised by reference to the legal exchange date of the housing transaction. \n   \n Conveyancing services: \n Where the Group provides conveyancing packaging services, the revenue is recognised by reference to the legal exchange date of the housing transaction. \n   \n Interest income from client monies balances: \n Revenue is recognised over time as interest accrues. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable. The Group's interest income from client monies is presented within revenue given the collection and holding of client monies is an integral part of the estate agency franchising service provided to franchisees. \n   \n Surveying & Valuation Division \n Surveying & Valuation: \n Revenue from the supply of surveying and valuation services is recognised upon the completion of the professional survey or valuation by the surveyor, and therefore at a point in time. \n   \n For panelled valuation work, the Group acts as an agent, as the third-party panel firms perform the valuation services and bear the associated delivery and professional risks. The Group does not control the service before transfer to the customer and therefore recognises revenue on a net basis, representing the fee retained. \n   \n Asset management: \n Revenue earned from the repossessions asset management business is recognised by reference to the legal exchange date of the housing transaction. \n   \n   \n 2.5 Segment reporting \n An operating segment is a distinguishable segment of an entity that engages in business activities from which it may earn revenues and incur expenses and whose operating results are reviewed regularly by the Chief Operating Decision Maker (CODM), being the Board. The CODM reviews the Group's operations and financial position as Financial Services, Surveying & Valuation and Estate Agency Franchising, and therefore considers that it has three operating segments. \n   \n Within the Estate Agency Franchising operating segment, the only remaining owned operations relate to the Group's new build residential sales and conveyancing packaging businesses which are LSL Land & New Homes Limited and Homefast Property Services Limited, representing less than 10% of the Group's total revenue. \n   \n The Group's asset management business is included within the Surveying & Valuation Division. Management deemed the Group's asset management operations, including the class of customer for its services, are more closely aligned to the Surveying & Valuation Division. \n   \n The information presented to the Directors directly reflects the Group Underlying Operating Profit as defined in the alternative performance measures (APM) in note 5 and 34 to these Financial Statements and they review the performance of the Group by reference to the results of the operating segments against budget. \n   \n 2.6 Alternative Performance Measures (APMs) \n In reporting financial information, the Group presents a number of APMs that are designed to assist with the understanding of underlying Group performance. The Group believes that the presentation of APMs provides stakeholders with additional helpful information on the performance of the business. APMs are also used to help enhance comparability of information between reporting periods. The Group does not consider APMs to be a substitute for or superior to IFRS measures and the Group's APMs are defined, explained and reconciled to the nearest statutory measure in notes 5, 12 and 34. \n   \n 2.7 Discontinued operations \n The Group has classified its previously owned network of estate agency branches as a discontinued operation for the reporting periods ending after 31 December 2023. The Group operated a network of both owned and franchised branches prior to disposing of its entire owned network in 2023. The owned network was determined to be a separate major line of business because it made up the majority of the branch network, its revenue, costs and risk profile was significantly different to that of franchise and its cash flows could be clearly distinguished. \n Discontinued operations are presented in the Group Income Statement as a single line, which comprises the post-tax profit or loss of the discontinued operation, which relates to the movements in the dilapidation and restructuring provisions recognised as part of the original asset and share sales . \n   \n 2.8 Exceptional items \n Exceptional items are those which are material by size and are both non-recurring and unusual in nature. These items are presented within their relevant income statement category but highlighted separately on the face of the income statement. Items that management considers fall into this category are also disclosed within the notes to the Financial Statements (see notes 6 and 9). \n   \n Due to the nature and expected infrequency of these items, separate presentation helps provide a better indication of the Group's underlying business performance. This allows shareholders to better understand the elements of financial performance in the year, and to facilitate comparison with prior periods and to better assess trends in financial performance. \n   \n 2.9 Income taxes \n  Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted by the balance sheet date. Management periodically evaluates positions taken in the tax returns with respect to the situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. \n   \n Deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Financial Statements, with the following exceptions: \n   \n -     where the temporary difference arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination that at the time of the transaction affects either accounting nor taxable profit or loss; \n -       in respect of taxable temporary differences associated with investments in subsidiaries, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future; and \n -     deferred income tax assets are recognised only to the extent that it is probable that taxable profit will be available, against which the deductible temporary differences, carried forward tax credits or tax losses can be utilised. \n   \n Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply when the related asset is realised or liability is settled, based on tax rates and laws enacted or substantively enacted at the balance sheet date. \n   \n The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting period and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. \n   \n Deferred income tax assets and liabilities are offset, only if a legally enforceable right exists to offset current tax assets against current tax liabilities, the deferred income taxes relate to the same taxation authority and that authority permits the Group to make a single net payment. Income tax is charged or credited directly to other comprehensive income (OCI) or equity, if it relates to items that are charged or credited in the current or prior periods to OCI or equity respectively. Otherwise, income tax is recognised in the income sta...

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