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 managing director, Steve Coleby 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:
- Lovell has been selected by Suffolk County Council as its joint venture partner to deliver around 2,800 homes across Lowestoft, Mildenhall, Bramford, West Row and Newmarket.
- The partnership with the West Midlands Combined Authority (WMCA) continues to unlock stalled brownfield housing sites. To date the partnership has delivered over 700 homes of which 48% are affordable housing with its key development, Lockside, proving incredibly popular.
- Royal Victoria Court, Newport – This regeneration scheme on the former Whiteheads steelworks is underway. The £85m development is delivering 528 mixed-tenure homes, 50 per cent of which are affordable homes being delivered in partnership with Tirion Homes, Melin Homes and Welsh Government.
- Lovell Later Living has made big steps forward securing planning consent for our first Later Living open market sale development in Scarborough and signed a Strategic Partnership agreement with Places for People Living Plus accelerating delivery of Extra Care housing.
- We have exchanged contracts to deliver almost 400 homes in South Queensferry, near Edinburgh, a mixed development of affordable, build-to-rent and private housing. This will provide much needed supply across different housing types just outside Scotland’s capital city.
- Lovell is nearing the completion of the first phase of the ‘One Woolwich’ programme and about to commence phase 2 which will deliver a further 766 units over a 6-year programme.
- Located in Saxilby, Lovell Homes’ Ingleby View development has 100 per cent sold, just under six months ahead of its scheduled completion timescale of mid-next year. The new neighbourhood features a total of 119 homes.
- The first homeowners are now moving into the initial phase of the popular regeneration scheme, Spinners Quarter in Pendleton, Salford a joint venture development with Together Housing Group. Spinners Quarter has seen unprecedented demand since its launch and is transforming the local community with much needed energy efficient homes.
To view the Morgan Sindall Group plc half year results video, click.