In its trading update, the group said this expanded from 11.6% to 11.8%.
The Pivotal Group joint venture – which acquired Xact Mortgages, Believe Money, More Choice and McPolin Financial Services, among others, last year – agreed a new senior debt facility to support its expansion without the need for shareholder funding.
The group also launched a £12m share buyback programme, purchasing shares from shareholders. LSL said the programme would prioritise organic growth investments and strategic bolt-on acquisitions.
LSL said the group continued to make progress against a mixed market backdrop and reported improved profit across its lettings, surveying and valuation, and financial services divisions.
It said its full-year results for 2025 were in line with the board’s expectations, with a strong performance in the second half of the year.
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LSL’s group revenue was up by around 6% to £183m, and its underlying operating profit is expected to rise by 15% annually, with second half profit up by around 30%.
LSL said 2026 had seen a positive start, and the refinancing tailwind seen at the end of last year was continuing into this year, supporting its financial services and surveying and valuation divisions.
It expects to report profit growth by the end of 2026.
Adam Castleton, group chief executive of LSL, said the group “delivered a strong performance over the period”.
He added: “Underlying operating profit was up in all three divisions and our central costs reduced – we achieved a record-high group operating margin. The group saw an acceleration in our revenue and profit in the second half of the year and we have started 2026 in line with our expectations.
“As we start 2026, we are working at pace on further growth initiatives.”
Castleton continued: “With our strong financial performance and a highly resilient, cash generative business model, we are returning cash to shareholders through our enlarged share buyback programme.
“I am excited about the opportunities ahead for the group, as we continue to drive forward success in our core businesses and increasingly [work] together for the benefit of the wider group.”
