Property services group LSL says it has made progress in restructuring and refocussing its business despite challenging conditions.
The North East-based provider of surveying, valuation and mortgage services is on a mission to simplify its model and protect itself from housing market cycles. Earlier this month it told investors it was moving to franchise its network of 183 estate agent branches as a major part of that process.
Around 143 of the nationwide branches are now trading as franchises with the remaining 40 expected to make the switch soon. LSL says its resulting business - with 62 franchisees operating a network of just more than 300 branches - will be a "leading player" in the sector.
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In an update to the London Stock Exchange ahead of its annual general meeting, LSL said current non-executive chair Bill Shannon would step down from his post. Mr Shannon said he believed the group was now well placed for future growth.
He added: "Just over two years ago, we set out the key elements of a new strategy that placed at its heart our financial services network. As well as capitalising on the significant growth potential we had identified in financial services, we resolved to develop a simpler and more resilient business model that was less vulnerable to housing market cycles, allowing us to better pursue other exciting opportunities to grow our leading surveying and valuations business and develop the potential of our estate agency franchise operation.
"Although market conditions have often been difficult, I am pleased by the very substantial progress we have made. This includes consistent and strong financial performance in our financial services network and surveying and valuations businesses, the transfer of our direct-to-consumer brokerages to Pivotal Growth, our joint venture with Pollen Street Capital, and the disposal of Marsh & Parsons at an attractive valuation."
Last month, LSL revealed its 2022 performance showing a slump in underlying operating profit from £49.3m to £36.9m. Bosses blamed a smaller house buying market and the fallout from the Liz Truss Government's mini-Budget for creating headwinds.
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