WE MUST NOT LOSE SIGHT OF THE WIDER ISSUES WE FACE

Added by Love Business East Midlands | 25 February 2021

UPDATED: 25 February 2021

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, Robert Adams 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.”

The Eastern team is currently working on a number of key projects including the upcoming March launch of Stephenson Grange in Holmewood, near Chesterfield. This site is the first Eastern development with Together Housing Group with a future site in Howden also planned. Other key developments include Willow Grange at Lakeside, Ingleby View in Saxilby, The Leeway in Hull in partnership with Compendium Living, and Tennyson Fields in Louth which is a joint venture with Acis Housing.

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