LSL attributed this to a focus on “smaller, mortgage-led” businesses that were best placed to benefit from its platform and services.
The division, comprising mortgage network Primis, mortgage club TMA Club and its share of profit after tax from Pivotal Growth, saw a slight rise in revenue, from £48.4m to £48.8m.
The business has more than 2,500 advisers in total, and they improved their revenue by 19% to £20m as new mortgage lending completed by the division rose 23% to £35bn.
There was a slight fall in mortgage and protection adviser numbers across Primis, dropping from 2,282 to 2,195, and LSL said its “strategic decision” to focus on “composite” advisers instead of protection-only firms led to a 5% reduction in network firms to 1,049.
LSL’s share of profits after tax in Pivotal Growth was £800,000, compared to zero profit the year before.
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The division ended the year with an operating profit of £6.3m, up from £4.7m the year before, with the increase driven by lower costs.
Costs expected from TenetLime administration
LSL said the profit contribution from TenetLime was in line with expectations, as the acquisition – which completed in 2024 – delivered returns exceeding the cost of capital.
However, TenetLime was acquired before Tenet Group announced it had entered administration in May 2024, and LSL said future costs may arise due to this, and the group was currently in discussions with administrators regarding these costs.
Pivotal Growth’s profit rises
The Pivotal Growth joint venture, which acquires mortgage advice firms, delivered a profit before tax of £2.1m, up from £100,000 in 2024.
It has completed 24 acquisitions to date and LSL said it had a “strong” merger and acquisition pipeline. The business most recently acquired specialist advice firms CLS Money and Simply Lending.
LSL’s other divisions
LSL’s surveying and valuation division increased its revenue by 10% to £107.6m, while its operating profit fell from £22.1m to £20.8m. The group said this was driven by a rise in surveying professional indemnity (PI) provision relating to historical valuation engagements.
The group had PI claim provisions of £4.3m, with £3.6m allocated to the surveying and valuation division and £700,000 to financial services.
It said these would cover the cost of claims that arise during the normal course of business, such as valuation and defect claims.
The estate agency division generated a revenue of £26.5m, down from £27.1m and its operating profit rose from £7.8m to £8.3m.
Profit rises across the group
The wider LSL group reported a 6% increase in revenue to £182.9m, while its underlying profit rose 17% to £32.6m. Its profit before tax was flat at £23.1m.
Adam Castleton, group chief executive of LSL, said: “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.”
He added: “Trading in 2026 has been in line with our expectations.”
