LSL Property Services (LSL) was canny to invest in Zoopla four years ago. The £1.9m investment had grown to £44m by the time the property portal listed on the stock market earlier this year. LSL realised part of that investment, generating £18m, which explains the massive increase in reported pre-tax profit. It now intends to return that to shareholders, after tax, through a special dividend of 16.5p. That tops the yield up to an eye-catching 7.5 per cent.
The news came as LSL reported decent half-year numbers. Revenues from the surveying division grew 10 per cent to £31.3m, while sales in the estate agency rose a fifth to £109m. The latter was driven by a 27 per cent increase in residential sales, accompanied by a 12 per cent rise in lettings income. Operational gearing kicked in, too, pushing the divisional operating profit up 46 per cent to £12.2m.