2021 has been an excellent year for the Group, with a record set of results. Group revenue rose 6% from 2020, delivering an adjusted operating profit of £131.3m (FY 2020: £68.5m) on revenue of £3.2bn (FY 2020: £3.0bn). The Group reported a secured order book of £8.6bn, up 4% on the year end. With a strong balance sheet and net cash of £358m (FY 2020: £333m), the Group is confident of achieving another good year of progress in 2022.
Lovell had a very strong year, with significant strategic and operational progress made. Revenue for the year was up 21% to £572m (FY 2020: £474m). Operating profit increased substantially, more than doubling to £33.2m, an increase of 108% (FY 2020: £16.0m). The operating margin increased to 5.8%, up from 3.4% supported by the higher mixed-tenure and contracting revenue as well as benefitting from continued operational efficiencies. The secured order book at the year-end was £1,498m, an increase of 4% on the prior year end (FY 2020: £1,445m).
Lovell managing director, Steve Coleby says: “Throughout the last two years, in the face of extremely challenging trading conditions, we have been relentless in our ambition to work with our partners to build the nation’s much needed homes. While our financial performance has exceeded previous results, it is the strength and unity of our team, that must be acknowledged for the successful delivery of over 3000 homes.
“We are in great shape, and we go from strength to strength, forming long term partnerships with other like-minded organisations, building on our reputation as a trusted and agile business. In just the last few weeks we have announced several new large-scale strategic partnerships and this news, coupled with the opening of new offices in Exeter, Bristol, Derby and Newcastle, gives us even greater geographical reach and nationwide capability.
“The future is incredibly bright for Lovell and as we enter a new phase in our growth strategy, we remain entirely focused on working in partnership to build many more high quality, affordable homes.”
Lovell highlights include:
- Royal Victoria Court, Newport - this regeneration scheme on the former Whiteheads steelworks is underway. The £85m development will deliver 528 homes in partnership with Tirion Homes, Melin Homes and Welsh Government.
- Bowlers Green, Hopton - a new development of 200 homes, delivered through the partnership with Repton Property Developments, along with Nar Valley Park with the Borough Council of King’s Lynn and West Norfolk, which will deliver 105 mixed tenure homes
- Lovell has been selected as preferred bidder to join forces with Suffolk County Council to form a property development alliance to build nearly 3,000 homes in Suffolk.
- The Gateway - the flagship phase of the Platting Village development is underway and will deliver 43 properties in total, consisting of two-bed apartments, plus three and four-bed homes.
- Lovell Later Living is leading the development of 3 extra care housing schemes across Hampshire working in partnership with Hampshire County Council and Places for People Living Plus.
- Fountain lane, Oldbury - the partnership with the West Midlands Combined Authority goes from strength-to-strength with work progressing on site to transform a former foundry site on Fountain Lane in Oldbury, creating 234 modern multi-tenure homes.
- Expansion across the Eastern region is gathering pace with six new developments opening to the public later in the year; starting with 124 homes in Spennymoor and 46 new homes in Spencerbeck. Other ongoing developments include Stephenson Grange in Holmewood and Saddlers Grange in Howden, both in Joint Venture with Together Housing Group.
- Philips Hamilton - Planning consent has been granted at the former lighting factory site, which will see the development of 123 homes for sale on the open market and 40 affordable properties.
- Lovell is developing a £45m residential-led, regeneration scheme in partnership with Welwyn Hatfield Borough Council. Hatfield Rise will provide 146 new homes, replacement shops and improved public realm.
- In partnership with the Royal Borough of Greenwich, the provision of 1,615 homes on the Connaught, Morris Walk and Maryon Road/Grove estates in Woolwich progresses. Trinity Walk completed in 2021 providing 684 new mixed tenure homes and preparations for Trinity Park are currently in hand with ground breaking expected soon.
- The Lovell team is working on Littlemoor Road development in Weymouth, a joint venture with ABRI which will provide 500 new homes over the next 9 years with a project value of £127m.
- The first open-market development in the Southern region, Cherry Pie Meadow in Sparkford, has hit the mark with buyers. Selling 95% of properties off plan, Lovell has further strengthened its geographical reach into Somerset.
Morgan Sindall Group plc year end results 2021
