With profits totalling £37.4m, partnership housing specialist Lovell has announced another record performance in year-end figures published today. Up 12.7% compared with last year, these results have made a significant contribution to the overall performance of parent company Morgan Sindall Group plc, whose impressive year-end financial results were also unveiled earlier this morning.
The Group delivered a strong performance in 2022, with significant strategic and operational progress made across the business despite the market headwinds. The results were another record for the Group and reflected the high quality of the Group’s operations and the talent and commitment of its people.
Group revenue increased by 12% up to £3,612m while adjusted* profit before tax increased 7% to £136.2m. The Group’s balance sheet remains strong with net cash of £355m, and with a high-quality secured workload of £8.5bn, the Group is looking forward with optimism.
*Before exceptional building safety charge of £48.9m and intangible amortisation of £2.0m
Lovell has achieved significantly strong financial results with revenue up 22% to nearly £700m (FY 2021: £572m). Operating profit of £37.4m was up 12.7% on the prior year (FY 2021: £33.2m), along with an excellent Return on Capital Employed of 19%. The secured order book at the year-end was £3.4bn, representing a 23% improvement on last year’s position and a clear reflection of the successful strategic growth and partnership model.
Lovell area managing director for the North, David Ward says: “2022 has seen us deliver record financial results with strong growth achieved in revenue and profits across the board. Throughout both mixed tenure and contracting activities, we’ve increased the volume of units completed to almost 4,000 (YE 2021: 3,000) whilst also increasing our ongoing portfolio of long-term joint ventures and contracting schemes.
“The year end results are fantastic, especially given the continued turbulence in the UK economy and the wider landscape of construction material shortages, inflationary cost increases and slow planning progression in parts of the UK. Our success is undoubtedly testament to the ongoing strength and commitment of the entire Lovell team, our supply chain and our partners who work relentlessly to achieve our ambitions.
“As we enter an even more challenging time for the housing industry, it is pleasing to know that our partnership model offers us some protection from projected market conditions.”
Lovell is working on key projects including The Gateway, the penultimate development of Lovell’s ten-year regeneration in Miles Platting, has sold exceptionally well and has recently released its apartments for sale. Saxon Square, the final scheme on this landmark development, has started on site and will deliver 28 popular townhouses in this key location.
