Lovell doubles profit in latest financial results
Partnership housing specialist Lovell has announced today that it has delivered its most profitable year in the company’s history. Figures reported this morning by parent company Morgan Sindall Group plc, the construction and regeneration group, reveal that Lovell has doubled its profit compared to 2020.
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 regional managing director, James Duffett 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 nationwide.
“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 opened our brand-new office in Bristol, which 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 projects include:
- The Mill, Cardiff – Wales’ largest regeneration project, which is delivering 800 mixed-tenure homes, commences the final two phases of the
affordable homes programme. These final phases will see a further 262 affordable homes delivered for rent through Tirion Homes and Cadwyn, as well as five retail units. Phase C has already welcomed new residents as Lovell has commenced sectional completions, which conclude in September 2022. Lovell has been engaged under a preconstruction service agreement to design Phase D, the final phase on this landmark development, which is due to commence piling operations in February 2022 and will be completed in autumn 2024. - Foxglove Meadows, Weston-super-Mare – This £32m development, adjacent to Woodside Avenue, is halfway through development and is delivering 81 open market homes and 49 affordable homes for rent and shared ownership with Abri.
- Royal Victoria Court, Newport – This regeneration scheme on the former Whiteheads steelworks is underway, delivering 528 open market homes and affordable homes for rent and shared ownership, in partnership with Tirion Homes, Melin Homes and Welsh Government. The showhomes at the £85m development are due to open this summer, with the first completions expected in autumn 2022.
- Drummond Park, Ludgershall – Work on this £110m former Defence Medical Equipment Depot development commenced in November 2021. The site, which is being delivered in partnership with Homes England and Stonewater, will provide 412 homes, including 309 for open market sale and 103 affordable homes. The showhomes are due to open in September 2022, with the first completions due in autumn.
- Chartist Garden Village, Pontllanfraith – Work on this design and build scheme for Pobl is due to commence in February 2022. The site will deliver 123 homes, including 40 for open market sale and 83 affordable homes for rent and shared ownership.
- Crick Road, Portskewett – A building contract has been awarded for this design and build project for Melin Homes and Candleston Homes, in partnership with Monmouthshire County Council. Work is due to begin in February 2022, and will provide 201 open market homes and 68 affordable homes.
- Crick Road Care Home, Portskewett – A building contract has also been awarded for this design and build project for Monmouthshire County Council. The project will deliver a 32-bedroom care home, with work due to commence in February 2022.
- Locke Gardens, Llanwern – This £105m development delivering 500 new homes is now underway, after contracts completed in August 2021. The site is part of the wider Glan Llyn development, and will bring 285 open market sale homes and 215 affordable homes in partnership with Pobl. The showhomes and first completions are due in autumn 2022.
