LSL Property Services expects its mortgage broking division to become its largest profit contributor and "chief engine of growth" within two years.
In its final results for 2020, published today (April 28), the group said the financial services division, which includes Primis, is expected to be the largest profit contributor to the group for the first time by 2023.
The financial services division’s underlying operating profit, before costs relating to Covid-19, increased by 16 per cent to £13.5m in 2020.
At the moment LSL's surveying division contributed the largest underlying operating profit, of £17.9m in 2020, before costs relating to Covid-19.
David Stewart, LSL's chief executive, said financial services would be its “chief engine of growth and enhanced profitability”.
Stewart added: “The group has invested significantly in its digital capability, which was enhanced further by the recent acquisitions of Mortgage Gym and Direct Life and Pension Services, and we now have industry-leading technology available.
“These factors combined to make LSL a compelling partner for Pollen Street Capital and The Property Franchise Group, in two recently announced strategic initiatives that we expect to deliver significant value for our shareholders.”
Yesterday (April 27) the group announced it had been selected by estate agency The Property Franchise Group as the preferred provider of mortgage and protection advice to its physical office locations.
It followed the announcement last week (April 23) of a £200m joint venture with private equity investor Pollen Street Capital to launch a new mortgage broking consolidator, with acquired businesses expected to become members of Primis.
According to LSL's final results for 2020, the number of appointed representative firms in the Primis network increased by 6 per cent to 930, and the number of advisers by 8 per cent to 2,585 in 2020.
The group added that the number of advisers had grown further, to 2,681 as of March 31.
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