Lovell Reports 53% Rise in Revenue in Half Year Results
Partnership housing specialist Lovell has made an important contribution to results for the half year, released today by parent company Morgan Sindall Group plc, the construction and regeneration group.
Morgan Sindall Group has delivered a record set of results for the first half of 2021, with trading substantially ahead of ‘pre-pandemic’ 2019 levels. Compared to 2019, revenue was up 10% to £1,559m (HY 2019: £1,421m) with adjusted operating profit of £54.8m (HY 2019: £37.5m), up 46%. The Group’s balance sheet has also further strengthened, with net cash of £337m and average daily net cash for the half of £294m. With three profit upgrades in the first half of the year and a high quality order book with a secured workload of £8.3bn, level with year-end, the Group is well-positioned for continued future growth.
Lovell has seen high levels of market demand across the first half, with revenue up 53% to £270m (HY 2020: £176m). Revenue was 14% higher than in the comparative period in 2019 (HY 2019: £238m). Operating profit of £12.1m was up 476% on the prior year (HY 2020: £2.1m) and up 89% on the comparative period in 2019 (HY 2019: £6.4m), driven by the higher mixed-tenure revenue and operational improvements. The operating margin increased to 4.5% (HY 2020: 1.2%).
Paula Broadbent, Managing Director, Lovell Later Living, comments: “Our half year results reflect the continued hard work and commitment of the entire Group including Lovell’s delivery through partnerships. The Later Living business is the newest member of Lovell Partnerships and we aim to add several more strategic partnerships, investing in the delivery of later living communities, increasing the businesses platform for further growth.
“I am excited to be leading the business growth in the later living market space and with the strength of these half year results we will achieve great things despite the challenges in the market right now. It’s widely publicised that the impact of material shortages is ongoing, but we are working proactively with our supply chain to forward plan, because our number one priority remains, to support our customers and partners by delivering much needed, appropriate housing for later life.
“We look to the future, making progress in reducing our carbon footprint working collaboratively with our colleagues in the Group, our valued partners and suppliers, to make change happen – achieving net zero carbon will only happen if we work as one.”
Lovell Later Living is currently working on a number of key projects across the UK with planning consent recently granted on the Woodlesford project, the third of four Extra Care schemes due to be developed by Lovell Later Living as part of Leeds City Council’s ambitious extra care housing programme. All four Leeds based schemes are being delivered in Partnership with Home Group and Leeds City Council. The second of these schemes, Greenmill Gardens, Seacroft, will comprise of 64 one and two bedroom apartments and construction commenced earlier this year with delivery partner Morgan Sindall Construction. Two earlier commenced Lovell Later Living Extra Care Schemes, Nightingale Lodge, Romsey and Amblers Orchard, Leeds are anticipated to achieve Practical Completion this autumn, with first occupations anticipated before the close of 2021.
To view the Morgan Sindall Group plc year end results video, click here.