LOVELL PROFIT UP 15% IN HALF YEAR RESULTS

Partnership housing specialist Lovell has made a significant contribution to results for the half year, released today by parent company Morgan Sindall Group plc, the construction and regeneration group.  Lovell has made a £13.9m profit, a rise of 15% on last year’s half year figures.

The Group delivered a record performance in the first half against a difficult market backdrop, with Group revenue increasing by 9% up to £1,698m (HY 2021: £1,559m), while adjusted operating profit increased 4% to £56.9m (HY 2021: £54.8m). The Group demonstrated continued balance sheet strength with net cash at the period end of £274m and has a high-quality order book with a secured workload of £8.5bn.  Following our strong first half performance and with the current visibility we have of the rest of the year, we now expect to deliver a result for the full year which is slightly ahead of our previous expectations.

Lovell has continued to make strong progress in the period, with revenue up 5% to £284m (HY 2021: £270m).  Operating profit of £13.9m was up 15% on the prior year (HY 2021: £12.1m) with the operating margin increasing to 4.9% (HY 2021: 4.5%).

Lovell regional managing director, James Duffett says: “Our strong half year results are testament to the ongoing hard work and commitment of the entire Lovell team, our supply chain and our cherished partnerships.  Together, we are helping deliver thousands of much needed new homes across the UK. 

“The first half of the year has seen strong demand for high quality, affordable homes whilst our trusted partner status has also helped enhance our order book. We are in a strong position for further growth this year and look forward to building on and forging new partnerships as we continue to deliver the homes of the future.

“Sustainability remains a priority, and we are making great progress towards our target of being carbon neutral by 2030.”

Lovell is working on key projects including:

1.            The Mill, Cardiff – Work is underway of the final two phases of the affordable homes programme, which will see a further 262 affordable homes delivered for rent through Tirion Homes and Cadwyn, as well as five retail units. Phase C has already welcomed new residents as Lovell has commenced sectional completions, which will complete in September 2022. Phase D commenced piling operations in February 2022, and will be completed in autumn 2024. As Wales’ largest regeneration project, the development is delivering 800 mixed-tenure homes in total.

2.            Foxglove Meadows, Weston-super-Mare – This £32m development, adjacent to Woodside Avenue, is nearing completion and delivering 81 open market homes and 49 affordable homes for rent and shared ownership with Abri. All of the Lovell open market homes, excluding the show home, have now been released for sale.

3.            Royal Victoria Court, Newport – This regeneration scheme on the former Whiteheads steelworks is underway, delivering 528 properties, in partnership with Tirion Homes, Melin Homes and Welsh Government. The development consists of 264 open market homes, 234 affordable homes for rent and shared ownership, and an additional 30 homes for low cost home ownership. During an off-plan launch in March 2022, the first release of open market homes sold out, and in April, 50 per cent of the apartments sold. The showhomes at the £85m development are due to open in September 2022, with the first completions expected in autumn.

4.            Drummond Park, Ludgershall – Work on this £110m former Defence Medical Equipment Depot development is underway. The site, which is being delivered in partnership with Homes England and Stonewater, will provide 412 homes, including 309 for open market sale and 103 affordable homes. Following an off-plan launch in April 2022, the showhomes will be opening in August, and the first completions are due in autumn. At the development, Lovell is running a Veteran Community Build scheme with Stonewater, Alabaré and Wiltshire Council, which is providing ex-military personnel with work, mentoring and the opportunity to secure a new affordable home.

5.            Locke Gardens, Llanwern – This £105m development delivering 500 new homes is underway. The site is part of the wider Glan Llyn development by St Modwen, and will bring 285 open market sale homes and 215 affordable homes in partnership with Pobl. The development launched off-plan in May 2022, and the showhomes and first completions are due in autumn.

6.            Chartist Garden Village, Pontllanfraith – Work on this design and build scheme for Pobl and Caerphilly County Borough Council began in March 2022. The site will deliver 123 homes, including 40 for open market sale and 83 affordable homes for rent and shared ownership, and is expected to be completed in summer 2024.

7.            Crick Road, Portskewett – Construction work has now commenced on this design and build project for Melin Homes, Candleston Homes and Monmouthshire County Council. The £45m million development will create 201 open market homes and 68 affordable homes, and will deliver a 32-bedroom care home which will be managed by Monmouthshire County Council. The project will take approximately four and a half year to complete.

8.            Lansdowne Hospital site, Cardiff – A building contract has been awarded for this design and build scheme to deliver 106 new homes, including 68 properties managed by Hafod and 38 properties managed by Cardiff Council. Construction work on the £24m project is due to commence in October 2022. 

9.            Ringland Regeneration, Newport – A building contract has been awarded by Newport City Homes to deliver the next phase of the “Ringland Regeneration” project. The £34m project is set to be delivered over four phases, and provide 158 new homes and the relocation of the Ringland shopping centre. 

10.          Oakfield, Swindon – Lovell has entered contract with Nationwide Building Society to deliver this design and build scheme, consisting of 239 mixed-tenure homes. Work on the site is due to commence in August 2022, and is expected to be completed in summer 2024.

To view the Morgan Sindall Group plc half year results video, click

About Lovell:

Lovell, part of Morgan Sindall Group plc, is a leading provider of partnership and open-market housing. The company has expertise in housing-led regeneration including new-build, open market housing, refurbishment, planned maintenance and assisted living. With offices in England, Scotland and Wales, Lovell provides a comprehensive range of services and can offer a full range of build and maintenance options for clients.

Morgan Sindall Group plc is a leading UK Construction & Regeneration group with annual revenue of £3.2bn, employing around 7,200 employees and operating in the public, regulated and private sectors.  It reports through five divisions of Construction & Infrastructure, Fit Out, Property Services, Partnership Housing and Urban Regeneration.