Up 12.7% compared with last year, these results have made a significant contribution to the overall performance of parent company Morgan Sindall Group plc, whose impressive year-end financial results were also unveiled earlier this morning.
The Group delivered a strong performance in 2022, with significant strategic and operational progress made across the business despite the market headwinds. The results were another record for the Group and reflected the high quality of the Group’s operations and the talent and commitment of its people.
Group revenue increased by 12% up to £3,612m while adjusted* profit before tax increased 7% to £136.2m. The Group’s balance sheet remains strong with net cash of £355m, and with a high-quality secured workload of £8.5bn, the Group is looking forward with optimism.
*Before exceptional building safety charge of £48.9m and intangible amortisation of £2.0m
Lovell has achieved significantly strong financial results with revenue up 22% to nearly £700m (FY 2021: £572m). Operating profit of £37.4m was up 12.7% on the prior year (FY 2021: £33.2m), along with an excellent Return on Capital Employed of 19%.
The secured order book at the year-end was £3.4bn, representing a 23% improvement on last year’s position and a clear reflection of the successful strategic growth and partnership model.
Lovell managing director, Steve Coleby says: “2022 has seen us deliver record financial results with strong growth achieved in revenue and profits across the board. Throughout both mixed tenure and contracting activities, we’ve increased the volume of units completed to almost 4,000 (YE 2021: 3,000) whilst also increasing our ongoing portfolio of long-term joint ventures and contracting schemes.
“The year end results are fantastic, especially given the continued turbulence in the UK economy and the wider landscape of construction material shortages, inflationary cost increases and slow planning progression in parts of the UK. Our success is undoubtedly testament to the ongoing strength and commitment of the entire Lovell team, our supply chain and our partners who work relentlessly to achieve our ambitions.
“As we enter an even more challenging time for the housing industry, it is pleasing to know that our partnership model offers us some protection from projected market conditions.”
Lovell is working on key projects including:
- Infrastructure works recently started at the Queensferry development, just outside Edinburgh. The 400 homes in a prime location will provide much needed supply for the area. We are looking forward to launching sales in March this year.
- The North East region has broken ground on its Northshore development in Stockton-on-Tees. The site is a brownfield regeneration scheme that boasts 113 plots, and is set to deliver much-needed affordable homes on behalf of Thirteen Group by 2024.
- The Eastern team has launched the second phase of its Louth development, Tennyson Fields, following the success of the site’s first phase. Once complete, phase two will offer 141 two, three and four-bedroom high-specification homes.
- A joint venture development with Trafford Housing Trust, Whalley Manor in Whalley, is delivering 188 homes with 30% set to be either affordable rent or shared ownership. This strategic joint venture has the potential to deliver more schemes in the near future within the North West.
- Wild Walk in Telford leads the way as a multi-tenure, multi-generational sustainable housing scheme, alongside partners Nuplace and the Wrekin Housing Group. The scheme is delivering ‘Future Homes Standard’ properties which surpass current regulations for energy efficiency and insulation.
- The East Midlands region has continued to grow significantly during the past 12 months, progressing six live developments across the region, completing 115 units and expanding to a team of more than 40 since opening its Derby office in 2022.
- The show homes at Royal Victoria Court, a regeneration scheme on the former Whiteheads steelworks, are now open. The £85m development is delivering 528 homes, 50 per cent of which are affordable, in partnership with Tirion Homes, Melin Homes and Welsh Government.
- Contracts have been signed for the joint venture between Lovell and Suffolk County Council to build nearly 3,000 homes across Lowestoft, Mildenhall, Bramford, West Row and Newmarket in Suffolk. More details on the partnership are set to be announced in early 2023.
- London and Southern - Lovell has been appointed by Notting Hill Genesis to build the final phase of Royal Albert Wharf, Gallions 3B, providing 238 homes, delivering 76% affordable housing. Works have commenced in January 2023, with a planned completion of Spring 2025.
- Lovell Later Living strengthens its strategic partnerships across the country, opening Extra Care Housing schemes in Hampshire and Leeds. Current schemes in Norfolk, Leeds and Hampshire are also in progress and planning consent is awaited for the first intergenerational development incorporating Later Living open market sales and extra care housing alongside Lovell Homes in Hunstanton.
To view the Morgan Sindall Group plc year end results video, click https://vimeo.com/manage/videos/801289120