Morgan Sindall Group has delivered a record set of results for the first half of 2021, with trading substantially ahead of ‘pre-pandemic’ 2019 levels. Compared to 2019, revenue was up 10% to £1,559m (HY 2019: £1,421m) with adjusted operating profit of £54.8m (HY 2019: £37.5m), up 46%. The Group’s balance sheet has also further strengthened, with net cash of £337m and average daily net cash for the half of £294m. With three profit upgrades in the first half of the year and a high quality order book with a secured workload of £8.3bn, level with year-end, the Group is well-positioned for continued future growth.
Lovell has seen high levels of market demand across the first half, with revenue up 53% to £270m (HY 2020: £176m). Revenue was 14% higher than in the comparative period in 2019 (HY 2019: £238m). Operating profit of £12.1m was up 476% on the prior year (HY 2020: £2.1m) and up 89% on the comparative period in 2019 (HY 2019: £6.4m), driven by the higher mixed-tenure revenue and operational improvements. The operating margin increased to 4.5% (HY 2020: 1.2%).
Lovell managing director, Steve Coleby says: “Our half year results reflect the continued hard work and commitment of the entire Lovell team in the delivery of partnership homes. With the addition of several more strategic partnerships we have increased our orderbook and created a great platform for further growth.
“That’s not to say there aren’t challenges in the market right now. It’s widely publicised that the impact of material shortages is ongoing and in response we are working proactively with our supply chain to forward plan. Our number one priority remains, to support our partners in the delivery of much needed, high quality, affordable homes.
“As we look to the future, we continue to make good progress in reducing our carbon footprint. By working collaboratively with our colleagues in the Group, our valued partners and suppliers, we can make change happen - achieving net zero carbon will only happen if we work as one.
Lovell is working on key projects including:
- Work has started at Bowlers Green, Hopton a new development of 200 dwellings, this is the second development to be delivered through the partnership with Repton Property Developments. Work is now well underway at St Edmunds Park, Acle a development of 137 dwellings with the temporary marketing suite now open on site.
- The 224 homes Joint Venture scheme with Together Housing Group is under construction at Kirk Ella. The Sycamores, which includes 2,3 and 4 bedroom homes, includes 56 affordable homes which will be transferred to East Riding Council. Two further developments in Yorkshire open to the public in September; the 119 homes development at Thorp Arch, with the affordable homes being transferred to Clarion Housing Group and the 175 homes scheme at Howden in partnership with Together Housing Group.
- Work has started on King George’s Gate, Tolworth, in the Royal Borough of Kingston-Upon-Thames, delivering 211 units for The Guinness Partnership. Ground has also broken at Whiteway in Letchworth Garden City, where Lovell is building 30 homes for Chalkdene Developments.
- Work is underway at one of Wales’ largest regeneration schemes, Royal Victoria Court in Newport. This £85m mixed tenure development will deliver 528 new homes in partnership with Tirion Homes and Welsh Government and is expected to be completed in 2025.
- Strong partnerships in Scotland continue to underpin the growth of this dynamic region with the latest partner announced as South Lanarkshire Council, taking all 42 affordable homes on the former lighting factory site, Philips Hamilton. Partnerships with East Lothian Council, Rural Stirling, Wheatley Group and Forth Valley Housing Group represent a total of 147 new homes.
- Planning consent has been granted on the Woodlesford project, the third of four Extra Care schemes due to be developed by Lovell Later Living as part of Leeds City Council’s ambitious extra care housing programme. All four Leeds based schemes are being delivered in partnership with Home Group and Leeds City Council.
- The first phase of the Lovell Together scheme at Salford, a partnership with Together Housing Group, is underway delivering 127 homes; 17 of which will be affordable homes for social rent. The development is set to be one of the largest strategic residential regeneration projects in Greater Manchester, with the overall masterplan set to bring more than 1,000 homes to the Pendleton area. Across in Liverpool, Lovell has partnered with Liverpool City Council and Riverside, to deliver 105 new homes including accommodation for vulnerable tenants with mobility issues and support requirements.
- A second deal has been successfully negotiated with Livewest, building on the partnership to deliver homes in the south of England. The £5.6m project is the second phase at Uffculme and will see 32 homes completed in 2022. The Cherry Pie Meadow development in Sparkford, Somerset is seeing strong sales and further strengthens growth in this region.
- In partnership with the West Midlands Combined Authority (WMCA) and Legal and General Affordable Homes, work has started on a former foundry site in Oldbury. The Junction will create 234 modern mixed-tenure homes and is the third scheme being delivered through the WMCA/Lovell strategic partnership which aims to unlock 4000 new homes on stalled brownfield sites.
View the Morgan Sindall Group plc year end results video, below.