Lovell has shown resilience against a softer housing market in the East Midlands through its partnership housing model. Over the last year, 287 homes were delivered in the region with 79% being 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%.
The secured order book at the year-end was £2.034bn, representing a 3% improvement on last year’s position and a clear reflection of the successful strategic growth and partnership model. These results have bolstered the overall results of parent company, Morgan Sindall Group plc, whose full year results were published to 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.
Beth Bundonis, regional managing director for the East Midlands, said: “The future is bright for Lovell in the East Midlands. Looking to the year ahead, we will continue this excellent momentum across the multiple developments currently underway to bring forth hundreds of new homes where they are most needed.
“Our refurbishment service is set to strengthen even further too, helping our partners make the best use of their existing property portfolios through redevelopment and repurposing spaces – all working towards creating more sustainable homes for the benefit of both residents and the environment.”
Lovell is working on a number of key projects in the East Midlands, including one of its most sustainable developments on Beckhampton Road in Bestwood, Nottingham. Being delivered on behalf of Nottingham City Council to suit a range of housing needs, many families were able to move in just in time for the festive period.
At St Aidan’s Garden in Burton-on-Trent – part of the wider Branston Locks development – open market homes are now on sale, while social rent and shared ownership properties for emh group are moving forward at pace.
The ongoing Castleward joint venture with Compendium Living, has further boosted the firm’s track record for transforming former brownfield sites into vibrant communities with hundreds of homes and apartments. With phase three of the scheme constructed and almost fully sold, phase four has secured planning and will be underway in the coming months.