Friday, August 12, 2022
BusinessLovell profit up 15% in half year results

Lovell profit up 15% in half year results

Partnership housing specialist Lovell has made a significant contribution to results for the half year, released today by parent company Morgan Sindall Group plc, the construction and regeneration group.  Lovell has made a £13.9m profit, a rise of 15% on last year’s half year figures.

The Group, which has offices in Scotland, delivered a record performance in the first half against a difficult market backdrop.

Group revenue increased by 9% up to £1,698m (HY 2021: £1,559m), while adjusted operating profit increased 4% to £56.9m (HY 2021: £54.8m). The Group demonstrated continued balance sheet strength with net cash at the period end of £274m and has a high-quality order book with a secured workload of £8.5bn.  Following our strong first half performance and with the current visibility we have of the rest of the year, we now expect to deliver a result for the full year which is slightly ahead of our previous expectations.

Lovell has continued to make strong progress in the period, with revenue up 5% to £284m (HY 2021: £270m).  Operating profit of £13.9m was up 15% on the prior year (HY 2021: £12.1m) with the operating margin increasing to 4.9% (HY 2021: 4.5%).

McColgan. (Image supplied with release by Orbit Communications)

Lovell managing director for the Scotland region, Kevin McColgan, said: “Our strong half year results are testament to the ongoing hard work and commitment of the entire Lovell team, our supply chain and our cherished partnerships.  Together, we are helping deliver thousands of much needed new homes across the UK. 

“The first half of the year has seen strong demand for high quality, affordable homes whilst our trusted partner status has also helped enhance our order book. We are in a strong position for further growth this year and look forward to building on and forging new partnerships as we continue to deliver the homes of the future.

“Sustainability remains a priority, and we are making great progress towards our target of being carbon neutral by 2030.”

Lovell is working on key projects including:

1.       Almost 400 homes in South Queensferry, near Edinburgh in a mixed development of affordable, build-to-rent and private housing. 

2.       Work has started on building of 123 private and 40 affordable new homes at Glow Garren, near Hamilton, on the site of the former Phillips factory.

3.       Construction of 150 homes in Mayfield, just outside Edinburgh

To view the Morgan Sindall Group plc year end results video, click

Lovell, part of Morgan Sindall Group plc, is a leading provider of partnership and open-market housing. The company has expertise in housing-led regeneration including new-build, open market housing, refurbishment, planned maintenance and assisted living. With offices in England, Scotland and Wales, Lovell provides a comprehensive range of services and can offer a full range of build and maintenance options for clients.

Morgan Sindall Group plc is a leading UK Construction & Regeneration group with annual revenue of £3.2bn, employing around 7,200 employees and operating in the public, regulated and private sectors.  It reports through five divisions of Construction & Infrastructure, Fit Out, Property Services, Partnership Housing and Urban Regeneration.

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