Lovell delivers a significant increase of affordable homes across the South Wales and West

Lovell has shown resilience against a softer housing market in the South Wales and West through its partnership housing model. Over the last year, 407 mixed-tenure homes were delivered in the region, with 65% for the affordable market, despite a challenging economic climate.

While there was a slowdown in the sale of private homes on mixed-tenure sites, due to the cost-of-living crisis and rising mortgage rates, revenue across Lovell Partnerships is up by 20% in the year to £838m, with an operating profit of £30.5m alongside a return on capital employed of 12%.

The secured order book at the year-end was £2.034bn, representing a 3% improvement on last year’s position and a clear reflection of the successful strategic growth and partnership model. These results have bolstered the overall results of parent company, Morgan Sindall Group plc, whose full year results were published to the London Stock Exchange this morning.

The Group delivered a strong performance in 2023 against a difficult market backdrop. The results were another record for the Group and reflected the strength and breadth of the Group’s operations and the talent and commitment of its people.

Group revenue increased by 14% to over £4.1bn, while adjusted operating profit before tax was up 6% to £144.6m.  The Group’s balance sheet remains strong with net cash of £461m, and its high-quality secured order book of £8.9bn, up 5% on the prior year leaves the Group well-positioned for the future and on track to deliver a result for 2024 in line with its current expectations.

James Duffett, regional managing director at Lovell, said: “2023 was a fantastic year for us at Lovell and saw us deliver hundreds more homes in the South Wales and West, across all tenure types, and create vibrant and accessible communities.

“Despite the ongoing market challenges, we are proud to have seen so much success in 2023, with our mixed-tenure sales developments at Royal Victoria Court and Locke Gardens in Newport and Drummond Park in Ludgershall continuing to thrive. We are now looking ahead to 2024 and will be striving to continue our success and strengthen our relationships with our long-standing partners.

“We are also taking the opportunity to invest further into the communities that we work. For example, our veteran build with Stonewater, Alabaré and Wiltshire Council in Ludgershall has allowed us to provide ex-military personnel with work, mentoring and the opportunity to secure a new affordable home.”

Lovell is working on a number of key projects in the South Wales and West, including an £85m regeneration scheme, Royal Victoria Court in Newport. A total of 528 mixed tenure properties are being delivered in partnership with Tirion Homes and Melin Homes, including 264 for open market, 234 for discount rent and 30 for shared ownership.

Lovell is also delivering a significant £105m development project, Locke Gardens, Llanwern, in partnership with Pobl, delivering 500 new mixed tenure homes. The site is part of the wider Glan Llyn development by St Modwen, a £1b regeneration project providing 4,000 homes.

Work is also progressing well at its Drummond Park development. Delivered in partnership with Homes England and Stonewater, it will bring forward 412 homes, including 309 for open market sale and 103 affordable homes.

To view the Morgan Sindall Group plc full year results video, click here.