Partnership housing specialist Lovell has made an important contribution to results for the half year, released by parent company Morgan Sindall Group plc, the construction and regeneration group.
Morgan Sindall Group has delivered a record set of results for the first half of 2021, with trading substantially ahead of ‘pre-pandemic’ 2019 levels. Compared to 2019, revenue was up 10% to £1,559m (HY 2019: £1,421m) with adjusted operating profit of £54.8m (HY 2019: £37.5m), up 46%. The Group’s balance sheet has also further strengthened, with net cash of £337m and average daily net cash for the half of £294m. With three profit upgrades in the first half of the year and a high quality order book with a secured workload of £8.3bn, level with year-end, the Group is well-positioned for continued future growth.
Lovell has seen high levels of market demand across the first half, with revenue up 53% to £270m (HY 2020: £176m). Revenue was 14% higher than in the comparative period in 2019 (HY 2019: £238m). Operating profit of £12.1m was up 476% on the prior year (HY 2020: £2.1m) and up 89% on the comparative period in 2019 (HY 2019: £6.4m), driven by the higher mixed-tenure revenue and operational improvements. The operating margin increased to 4.5% (HY 2020: 1.2%).
Lovell managing director, Steve Coleby says: “Our half year results reflect the continued hard work and commitment of the entire Lovell team in the delivery of partnership homes. With the addition of several more strategic partnerships we have increased our orderbook and created a great platform for further growth.
“That’s not to say there aren’t challenges in the market right now. It’s widely publicised that the impact of material shortages is ongoing and in response we are working proactively with our supply chain to forward plan. Our number one priority remains, to support our partners in the delivery of much needed, high quality, affordable homes.
“As we look to the future, we continue to make good progress in reducing our carbon footprint. By working collaboratively with our colleagues in the Group, our valued partners and suppliers, we can make change happen - achieving net zero carbon will only happen if we work as one.”
