The Group delivered a record performance in the first half of 2023, driven mainly by a strong performance from the Fit Out division. Group revenue increased by 14% up to £1,935m while adjusted profit before tax increased 10% to £59.8m. In addition, the Group’s balance sheet remains strong, with net cash at the period end of £263m.
The positive momentum across the Group is driven by a high-quality and substantial order book of £9.1bn, up 7% on the year-end position, and which spans a number of sectors across the built environment.
Despite continued economic turbulence, Lovell has delivered a resilient performance benefiting from its partnership model. Lovell has reported revenue of £373m (HY 2022: £284m) and operating profit of £10.1m (HY 2022: £13.9m). The secured order book at the period end is up 27% on the prior year at £2.074m.
Lovell managing director Steve Coleby says: “This is a time of real opportunity for Lovell. More than ever, we are supporting our partners through our flexibility, innovation and strength and we must remain focused on the delivery of homes that will shape future communities.
“The announcement from Homes England earlier in the summer, confirming its support of both replacement and regeneration schemes, is welcome news. Not only will this unlock a large number of regeneration schemes, it also paves the way for further investment in construction jobs and wider social value projects. As we continue to navigate challenging trading conditions, it is testament to our loyal and talented teams, that we continue to deliver quality homes, working collaboratively with our partners.”
Lovell is working on key projects including:
- Sandcastles, an exclusive over 55’s development from Lovell Later Living, opened to visitors at the end of July. This flagship development offers a completely fresh approach to age exclusive living, with properties uniquely designed to be adapted as needs change.
- Work has commenced on a £23m contract of 103 homes for RP partner Clarion in the heart of York which will take 2 years to complete. The scheme, Cocoa West, blends well with the current workload for the region and has potential to add further phases next year.
- Lovell is working in partnership with Saffron Housing Trust to build 354 new homes in Harleston, South Norfolk. Work will start in summer 2023, with 151 affordable homes and 203 open market homes set to be built.
- St Aidan’s Place – part of the wider Branston Locks development is progressing at pace with plots going on sale later this year. With 13 house types to suit a range of buyer needs, the Burton-upon-Trent development brings 190 homes to the area in partnership with emh group.
- Wild Walk in Telford is an innovative partnership between Lovell, Telford & Wrekin council, Nuplace Ltd and The Wrekin Housing Group. In addition to featuring some of the borough’s most carbon efficient new build homes, Wild Walk is a community of private and affordable rentals, rent to buy properties as well as dementia care and supported living facilities.
- The flagship scheme in Spennymoor is progressing well with sustainability at its heart. In line with Building Regulations 2021, Lovell is assessing Future Homes Standards by using construction methodologies and technologies required to decarbonise homes.
- Three planning consents have been secured with the West Sussex Joint Venture, the projects will see close to 150 homes in production in 2024, forming part of a secured 600-home pipeline.
- The multi-phase One Woolwich regeneration project in London is progressing well with phases four and five currently underway. These phases will deliver 766 new mixed tenure homes over 15 blocks up to 13 storeys in height. Completion is due September 2027.
- Saxon Square, the final phase of the landmark 264-acre Miles Platting Lovell development in Manchester, has started on site to deliver 28 townhouses. Once complete, Lovell will have delivered more than 600 new homes and refurbished more than 1,500 council properties at Miles Platting.
- Sales are progressing well at Royal Victoria Court, Newport, the regeneration scheme on the former Whiteheads steelworks. The £85m development is delivering 528 homes, 50 per cent of which are affordable, in partnership with Tirion Homes, Melin Homes and Welsh Government.
- Works started recently at Oakwood Edge – Mayfield, a mixed tenure development, just outside Dalkeith. The 156 homes will provide much needed supply for the area and sales will be launched in September.
To view the Morgan Sindall Group plc year half year results video, click here