Lovell has contributed to record preliminary results for the year ended 31 December 2018, released today by Morgan Sindall Group plc, the construction and regeneration group.
Morgan Sindall Group plc has delivered record profit for the full year to 31 December 2018, with adjusted profit before tax up 23% to £81.6 million (FY 2017: £66.1 million) on revenue of £2,972 million (FY 2017: £2,793 million), a 6% increase on the previous year. The Group reported a committed order book of £3.6 billion and a regeneration and development pipeline of £3.1 billion. Adjusted earnings per share was up 25% for the year to 151.8p (FY 2017: 121.1p) and total dividend per share increased by 18% to 53.0p (HY 2017: 45.0p). The Group demonstrated continued strength of the balance sheet with year-end net cash of £207 million and an average daily net cash of £99 million. They are in a strong position to deliver on expectations in 2019.
During 2018, Lovell built more than 2,500 homes across England, Scotland and Wales ranging from new-build open market homes, private rented sector housing and affordable homes to large-scale refurbishment and housing-led regeneration programmes. The company’s offer of the full mix of residential development services and bespoke development solutions has resulted in a combined national forward order book and regeneration and development pipeline now at £1 billion.
Major projects include:
A £250 million contract for the Ministry of Defence which is delivering 917 new homes for troops and their families relocating from Germany to Salisbury Plain in South Wiltshire as part of the Army Basing Programme. The first completed homes were officially handed over this month.
A £40 million development at Altcar Lane, Leyland, Lancashire by which Lovell will create 200 new homes through the Government’s Accelerated Construction programme on a 22-acre site purchased from Homes England. Lovell will start work in March on the construction of 140 homes for open market sale as well as 60 affordable homes for Together Housing Group.
The Mill, Canton: an award-winning £100 million new urban village in West Cardiff which is one of Wales’ largest regeneration programmes. Its 800 homes will comprise 358 homes for open market sale by Lovell and 442 homes for rent which will be managed by Cadwyn Housing Association for Tirion Homes. The scheme is going ahead with the support of the Welsh Government and financial backing from the Principality Building Society, and is being developed by Tirion in partnership with Lovell.
Trinity Woolwich: a £500 million major estate regeneration programme in Woolwich, south-east London in partnership with PA Housing and the Royal Borough of Greenwich. The scheme is transforming three local housing estates with 1,500 new homes: 1,000 properties for open market sale and 500 affordable homes.
Willow Grange, Doncaster Lakeside: a £30 million waterside residential development in Doncaster, south Yorkshire. Construction has begun on 147 two-, three- and four-bedroom homes, nearly all of which will be for open market sale.
Lochside Grange, a £25 million development by Lovell in Kinghorn, Fife, which is being delivered by Lovell in partnership with Kingdom Housing Association and Fife Council. It will provide 113 homes for open market sale by Lovell; ten low-cost homeownership homes for Fife Council and 10 social rented homes for the housing association.
The delivery of more than 400 homes for Norfolk County Council-owned property company Repton. The proposals will bring new homes to Acle, between Norwich and Great Yarmouth; Hopton, just north of Lowestoft and Attleborough, between Norwich and Thetford. They will be the first to be delivered through Repton which has been set up to help raise funds for the Council by releasing its surplus land for development. Construction is set to start in early 2020.
Queensbury Park, a £42 million development with Homes England at Priorslee, Telford, which will create 220 homes, including 165 homes for open market sale and 55 affordable and shared ownership homes.
Lovell managing director Steve Coleby says: “Our focus for 2019 is on continuing to drive strategic growth across England, Scotland and Wales. Lovell’s ability to provide such a comprehensive range of services to our clients and partners, and in particular our expertise in land-led residential development, has reinforced our credentials as a company able to bring forward the homes which are so badly needed. Our wide-ranging expertise allows us to proactively offer our partners creative solutions to releasing land for development. At the same time, the company’s extensive record of successful mixed tenure development enables us to create high-quality homes available for people on a range of incomes in the places where they are needed.”