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Lovell boosts Morgan Sindall Group’s results

Lovell has contributed to preliminary results for the year ended 31 December 2017, released today by Morgan Sindall Group plc, the construction and regeneration group.

The Group delivered a strong performance for the year with adjusted operating profit up 41 per cent to £68.6 million (FY 2016: £48.8 million) on revenues of £2,793 million, a 9 per cent rise on the previous year (FY 2016: £2,562 million). The reported operating profit was up 42 per cent for the year at £67.4 million (FY 2016: £47.4 million) with the Group ending 2017 with a net cash position of £193 million (FY 2016: £209 million). Adjusted earnings per share rose 43 per cent on last year at £121.1p (FY 2016: 84.7p). The dividend for the year is 45.0p, a 29 per cent increase from 2016’s 35.0p per share. The Group’s order book was also up 6 per cent to £3.8 billion.

New homes completed by Lovell at The Mill, Canton, Cardiff, one of Wales’ largest urban regeneration programmes.

Nationally, Lovell delivered 1,757 new-build homes in 2017 including homes for open market sale and affordable homes. Through long-term partnerships with housing associations and local authorities, the company undertakes new-build housing developments for sale and for rent, home refurbishment schemes and large-scale housing renewal programmes.

Lovell’s combined national forward order book and regeneration pipeline now stands at £1.4 billion.

Major projects include: 

-    A c£250 million contract for the Ministry of Defence (MOD) to build more than 900 new homes for troops and their families relocating from Germany to Salisbury Plain in South Wiltshire as part of the Army Basing Programme (ABP).

-    Orchard Place, King’s Lynn, Norfolk: a £20.4 million development of 130 homes which are the first to be built through Lovell’s large-scale development partnership with the Borough Council of King’s Lynn and West Norfolk.

-    Heath Farm, Holt, Norfolk: a £58.7 million development of 162 open market sale homes and 51 affordable homes for affordable rent and shared ownership through Victory Housing Trust. New show homes have just opened at the development.

-    Lochside Grange, a £25 million, 133-home development at Kinghorn, Fife, in partnership with Kingdom Housing Association and Fife Council. It will create 113 homes for open market sale by Lovell, ten homes for low-cost ownership through Fife Council and 10 homes for social rent through Kingdom Housing Association.

-    The Mill, Canton, Cardiff: one of Wales’ biggest regeneration programmes, this £100 million development is bringing 800 homes to the former Arjo Wiggins Paper Mill site in west Cardiff. Working with the Tirion Group and Cadwyn Housing Association, Lovell is creating a sustainable community of houses and apartments in a riverside setting two miles from the city centre. The Mill will create 442 homes for Tirion, which will be managed by Cadwyn Housing Association and made available for discounted or social rent while 358 homes will be for open market sale through Lovell. Lovell recently opened the development’s first show houses.

-    A 220-home, £53 million development at Clayton-le-Woods, Chorley, Lancashire, on land purchased from Homes England. The development is creating 198 homes for open market sale and 22 affordable starter homes with construction work set to start this month (February).

-    A £30 million waterside residential development in Doncaster, South Yorkshire, which will create 147 two-, three- and four-bedroom homes, nearly all for open market sale. Work is set to start this summer at the Doncaster Lakeside site.

-    A £40 million, mixed tenure 220-home development for Homes England at Priorslee, Telford. The scheme will create 155 homes for open market sale and 65 affordable homes. Construction began in November 2017.

Lovell national partnerships director Peter Quinn says: “The outlook for 2018 is highly encouraging as we continue to build urgently needed homes across England, Scotland and Wales.

“Lovell’s commitment to long-term partnership working is combined with the ability to bring forward land for development and create high-quality new homes across a range of tenures, from affordable housing to properties for sale on the open market, as well as provide housing refurbishment and planned maintenance services. We also work with central and local government partners to provide creative solutions for developing homes on public land – an approach which offers an important contribution to addressing the housing crisis.”