Lovell Partnerships continues to show resilience and is in a strong position to support future growth, which has contributed to Morgan Sindall Group’s half year results.
Half year operating profits are up by around 16% to £11.7m and, across the business, contracting activity was up by 21%. In addition, Lovell is delivering significant affordable homes, helping to support the UK’s severe need for high-quality affordable housing.
The firm’s secured and pipeline workload has increased significantly over recent years, through its geographic expansion and ambition to grow the number and size of multi-tenure sites.
The strength of these results can be attributed to its partnership model, which includes multi-tenure development of open market and affordable homes, together with its contracting expertise delivering new homes on a design and build basis, in addition to the planned maintenance and refurbishment of existing homes.
The Group delivered another record set of results in the first half, once again reflecting the high quality of its operations and the talent and commitment of its people.
Group revenue increased by 14% to £2.2bn, adjusted operating profit before tax was up 17% to £70.1m and the interim dividend up 15% to 41.5 pence per share.
The Group’s balance sheet remains strong with net cash of £351m, and together with its high-quality secured order book of £8.7bn, the Group is well-positioned for the future.
Lovell Managing Director, Steve Coleby, said:
“Our partnership housing model, which focuses on long-term partnerships with the public
sector, has provided resilience against a softer housing market and demand for contracting
has remained strong throughout the first half of the year.
“We welcome the new government’s recent pledge to create 1.5m homes within the next five years, including freeing up planning restrictions to enable further delivery. This will not only unlock a large number of regeneration schemes, but importantly will pave the way for further investment, bringing forward wider opportunities to create a positive and meaningful legacy in the communities we serve. Lovell is very well placed to support the government’s national targets and we are ready to deliver.
“Our continued strong performance is testament to our partners, supply chain and our colleagues, and we thank them for their valued commitment to delivering new homes in very challenging circumstances.”
Lovell is working on a number of key projects across the UK, including:
- Midlands – At its Cookley Works scheme in Dudley, Lovell has handed the keys over to 71 affordable homes to housing association, Platform Housing Group. Cookley Works is a major programme of brownfield regeneration that has been unlocked by Lovell, in partnership with Platform and the West Midlands Combined Authority.
- South Wales and West – Lovell and its partner, Newport City Homes, has started on site on the latest phase of 158 multi-tenure homes, as part of its Ringland regeneration scheme. The large-scale transformation programme will bring a new lease of life to the Ringland area of Newport and has been developed in close consultation with the local community.
- Scotland – In Midlothian, Lovell has handed over the first of 39 new social rented homes to Melville Housing Association. Oakwood Edge is located close to Mayfield, Dalkeith and Newtongrange. The wider multi-tenure development will have 156 new homes in a range of styles, including two, three, and four-bedroom homes and bungalows.
- North East – In the North East, Lovell continues at pace with its Cornish Park development in Spennymoor, Durham, which will deliver 124 multi-tenure homes. Lovell has also secured planning approval for 32 new homes in Whitburn, South Tyneside, with work due to start on site in the second half of the year.
- Eastern – In the Eastern region, Lovell has broken ground on three new developments at Burniston, Skelmanthorpe and Hessle, delivering 146 multi-tenure homes across the three sites. The team has also been heavily engaged with the local communities close to these sites, leading on a variety of activities to support public spaces and biodiversity, local businesses, as well as establishing a new charity partnership with the Leeds Hospitals Charity.
- East Midlands – Lovell has recently exchanged a land deal with housing association, EMH Group, which will see almost 70 affordable homes delivered in the market town of Desborough. The milestone marks the latest in an ongoing partnership between Lovell and EMH Group, who are working together on a further three developments across the region to create over 400 homes.
- East Anglia – The final phase of new homes for Lynnsport and King’s Lynn is now set to go ahead. The scheme forms part of the Borough Council of King’s Lynn and West Norfolk’s Major Housing Project, which it is delivering with Lovell and, once complete, will have delivered in excess of 1,000 multi-tenure homes in West Norfolk.
- Southern – Lovell has launched the first housing scheme of 22 sustainable, affordable homes on a site that was formerly home to Eastbrook Primary School. This first phase of development forms part of its 30-year partnership with West Sussex County Council, which will deliver over 600 homes in total.
- London – Lovell has recently ‘topped out’ on the first phase of 143 multi-tenure homes for housing association, The Guinness Partnership, on the former site of Matalan at Danesgate, Stevenage. The wider site, once complete, will create 526 much-needed homes for the borough.
- South West – In the South West, Lovell has received unanimous approval for a 71-home multi-tenure community at Winkleigh, along with a further 71-home scheme at Wivelscombe. Its flagship Weymouth scheme, as part of its joint venture with Abri, has also started to welcome new residents.
- North West – Lovell has completed its Miles Platting regeneration in the heart of Manchester. This 16-year partnership marks a significant milestone for Lovell in the North West. The final phase, Saxon Square, represents the high point of this transformative journey, having refurbished 1,500 homes and built approximately 700 new residences. This project has not only revitalised the East Manchester area but also set a new benchmark for urban renewal.
To view the Morgan Sindall Group plc full year results video, click here.
About Lovell:
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, affordable and build to rent, open market housing, refurbishment and retrofit, later living and strategic land. With offices across England, Scotland and Wales, Lovell offers a full range of residential solutions to its partners as both contractor and developer.
About Morgan Sindall Group:
Morgan Sindall Group plc, the Partnerships, Fit Out and Construction Services Group, reported annual revenues of £4.1bn in full year 2023, employing around 7,700 employees and operating in the public, regulated and private sectors. It reports through six divisions of Partnership Housing, Mixed Use Partnerships, Fit Out, Construction, Infrastructure and Property Services.
