Through its partnership housing model, Lovell has shown resilience against a softer housing market in the West Midlands.
As well as strengthening its refurbishment and planned maintenance offer, it has delivered 480 homes in the region, with 39% affordable, despite a challenging economic climate.
While there was a slowdown in the sale of private homes on mixed-tenure sites, due to the cost-of-living crisis and rising mortgage rates, revenue across Lovell Partnerships is up by 20% in the year to £838m, with an operating profit of £30.5m alongside a return on capital employed of 12%.
These results have significantly bolstered the overall results of the parent company, Morgan Sindall Group plc, whose full-year results were published on the London Stock Exchange this morning.
The secured order book at the year-end was £2.034bn, representing a 3% improvement on last year’s position and reflecting the successful strategic growth and partnership model. These results have bolstered the overall results of the parent company, Morgan Sindall Group plc, whose full-year results were published on the London Stock Exchange this morning.
The Group delivered a strong performance in 2023 against a difficult market backdrop. The results were another record for the Group and reflected the strength and breadth of the Group’s operations and the talent and commitment of its people.
Group revenue increased by 14% to over £4.1bn, while adjusted operating profit before tax was up 6% to £144.6m. The Group’s balance sheet remains strong with net cash of £461m, and its high-quality secured order book of £8.9bn, up 5% on the prior year leaves the Group well-positioned for the future and on track to deliver a result for 2024 in line with its current expectations.
“We have had another successful year, delivering some fantastic projects right across our region. We have continued to benefit from our partnership-focussed model, working closely with our local authority and housing association partners.
Stuart Penn, regional managing director at Lovell
“Despite market headwinds, we have worked to progress key projects in 2023. Wild Walk is a model of successful multi-generational, mixed-tenure, energy-efficient living, while we are completing a comprehensive refurbishment of a 19 storey block of flats alongside Sandwell MBC at Darley House. This scheme also includes a new, sustainable heating system across the wider estate.
“Looking further into 2024, we have a number of transformational projects underway and I look forward to seeing the ongoing impact of the regeneration taking place at The Junction in Oldbury.”
Lovell is working on several key projects in the West Midlands, including its Wild Walk project. Delivered in partnership with Telford and Wrekin Council, Nuplace and Wrekin Housing Group, this innovative development features a range of tenures to help address housing needs in the local area.
Work is also underway at the former New College Site in Telford, which is bringing forward the delivery of 86 homes for older people and 20 build-to-rent homes for Nuplace – a wholly owned company of Telford and Wrekin Council.
2024 will see the completion of The Junction in Oldbury as part of Lovell Partnerships’ ongoing relationship with the West Midlands Combined Authority. Transformed from a former industrial site that was disused for more than 20 years, through an investment of £3.95m from the West Midlands Combined Authority’s Brownfield Land Fund, the space has been cleared to create 234 new homes.
To view the Morgan Sindall Group plc full-year results video, click here.
