Lovell contributes £16m profit to parent Morgan Sindall Group

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Lovell homes in Wymondham Norfolk

Partnership housing specialist Lovell has made an important contribution to the 2020 year-end results, released today by parent company Morgan Sindall Group plc, the construction and regeneration group.

Morgan Sindall Group demonstrated resilience in the face of the COVID pandemic, delivering an adjusted operating profit of £68.5m (FY 2019: £93.1m) on revenue of £3.0bn (FY 2019: £3.1bn). The Group reported a secured order book of £8.3bn, up 9% year-on-year.  With a strengthened balance sheet and net cash of £333m (FY 2019: £193m), the Group has ended 2020 with real momentum. It now expects profit to be materially ahead of its previous expectations and slightly ahead of that delivered in 2019.  

Lovell reported an operating profit of £16.1m which was 12% down on the previous year due to COVID related delays on sites; however, the secured order book grew significantly to c£1.3 billion.  This high quality order book reflects the strategic progress the business is making and is further strengthened by the market opportunity available.  Looking ahead, it is expected that continued operational improvements and the benefit of higher revenue will drive margin and profit growth.

During 2020, Lovell built c2200 homes nationwide ranging from new-build open market homes, private rented sector housing and affordable homes to large-scale refurbishment and housing-led regeneration programmes.

Lovell regional managing director, Simon Medler says: “Since we announced our half year results back in August, the impact of the pandemic continues to be a dominant factor in our lives.  Yet, despite the complexity and enormity of the issues we face we have seen higher levels of construction and sales activity.  It has been particularly rewarding to be able to safely move families into a Lovell home, at a time when ‘home’ has never been more important.

“Going forward, we must not lose sight of the wider issues.  Tackling climate change and reducing our carbon footprint is critical and by harnessing the resources, knowledge and skills of the wider Group, we can make a much bigger impact.  Greater forward planning and collaboration has been one of the positive outcomes of COVID-19 and as we have demonstrated in the last year, if we remain open-minded and dispense with out-dated methods of doing business, we can make progress faster.”

Lovell is currently working on a number of key projects including:

1. William’s Park in Wymondham,  which is the first site in our JV with Flagship Group and will bring 335 mixed-tenure homes off London Road, including 224 for open market sale and 111 allocated for affordable housing or shared ownership .

2. Nora 4 in King’s Lynn, which is the lastest scheme underway in a Major Housing Project with the Borough Council of King’s Lynn and West Norfolk and will bring 105 new homes located off Morston Drift.

3. Heath Farm in Holt, which will see the £58.6 million design and construction of 213 mixed-tenure homes, with Victory Housing Trust taking the affordable homes on the site.

4. Wensum Grange in Fakenham, bringing 78 mixed-tenure homes to Rudham Stile Lane in partnership with Clarion Housing Group.

5. The Acorns in Walsham-le-Willows, which will bring 60 brand new homes located off Wattisfield Road, including 29 properties available for open market sale through Lovell Homes and 31 affordable homes with Havebury Housing Partnership.

6. Crown Meadows in Newton St Faith, where 69 new homes are underway on land off Manor Road, with 35 properties available for open-market sale through Lovell Homes as well as 34 affordable and shared ownership homes in partnership with Clarion Housing Group.

7. St Edmund’s Park in Acle, which is the first project in a new partnership with Repton Property Developments and will consist of 137 brand-new multi-tenure homes.  

8. Green Lane East in Rackheath, which is a new land-led project just starting onsite with long-term partner and leading regional housing provider Flagship Group to deliver 157 affordable homes.

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

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