Rise in network members behind LSL profit growth

Rise in network members behind LSL profit growth

LSL Property Services has attributed a “large part” of its profit growth to the increase in appointed representative (AR) firms joining its Primis mortgage network.

In its interim results for the six months ended June 30, published yesterday (August 5) LSL reported a 4 per cent increase in AR firms to 896, with a “strong pipeline” of new applicants in place at July 31.

Reporting a 14 per cent overall increase in its financial services division's operating profit to £4.9m, the group said the growth “in large part” had been secured through its “continuing success” in attracting new AR firms to the Primis mortgage network.

Additionally, LSL said it had seen “encouraging" trading in July, with mortgage applications 20 per cent ahead of July in the previous year, representing the highest month in 2020 and 16 per cent ahead of June 2020.

Simon Embley, group chairman of LSL Property Services, said: "I am pleased to confirm that LSL has performed extremely well, during a period of unprecedented uncertainty and disruption.

“Although we remain alert to the risk of more disruption, and will take prompt action should it occur, I am increasingly optimistic about market conditions, and am confident in our ability to compete successfully."

It comes after LSL’s financial services revenue had reduced by 18 per cent during April compared with the previous year, as demand for house purchase mortgages reduced to “negligible levels” during the pandemic.

In its latest set of results the group said its business mix of mortgage applications between purchase and refinance had “returned to normalised levels” at around a 50/50 split, after business was “heavily skewed” to refinance in April at around 86 per cent.

While LSL described current trading conditions as “extremely encouraging”, it added that the future course of the coronavirus and its impact on the economy and markets in which it operates remained “highly uncertain”.