Inspiring Business by Sharing Success

Lovell posts improved results from renewed momentum in the business

Partnership housing specialist Lovell, which has its Midlands regional office in Quinton, has contributed positively to the results released today by Morgan Sindall Group plc for the half year ended 30th June 2019.

Morgan Sindall Group has delivered strong profit growth in the first half of this year with adjusted operating profit up 18% to £37.5m (HY 2018: £31.9m) on revenue of £1,421m (HY 2018: £1,423m). The Group reports a secured order book of £4.2bn, up 19% from the year end, with the regeneration and development pipeline now £3.3bn, up 6% from the year end position. With adjusted earnings per share up 15% for the period to 64.2p (HY 2018: 55.6p), and interim dividend up 11% to 21.0p (HY 2018: 19.0p), the Group is confident of a strong performance for the second half of 2019.

Nationally, Lovell has seen a c40% increase in operating profit compared to the same period in 2018.  The company has increased investment across the country as the business embarks on a period of sustained growth and this has resulted in a combined national forward order book and regeneration and development pipeline of £1.1 billion.

Locally, Lovell has built more than 213 homes across the Midlands so far this year and has a forward order book and regeneration and development pipeline now at £175 million.

Lovell’s regional managing director Stuart Penn said:

“Our focus for the second half of the year is driving strategic growth in the business.

“Lovell’s ability to offer such a comprehensive range of solutions in unlocking land has led to our involvement in some of the UK’s most important homes schemes. 

“We’re excited to deliver urgently-needed high-quality homes across all tenures and look forward to completing work on an estimated total of 450 homes this year.”

The Midlands region is currently working on a number of key projects in Staffordshire, Shropshire and the West Midlands including:

  • A £5 million conversion project turning the former Stourbridge Police Station into 31 new apartments for open market sale
  • A £9.7 million refurbishment of three high rise apartment blocks at Lion Farm in Oldbury for Sandwell Metropolitan Borough Council.
  • Two, four-year contracts worth £6.5 million per annum, for internal and external planned maintenance to Sandwell Metropolitan Borough Council housing stock.
  • A two year, £3 million per annum contract to replace flat and pitched roofs to low rise housing for Walsall Housing Group.
  • A new £13.1 million development in Coven, Staffordshire with 37 homes for sale and 26 affordable homes.
  • A £25 million development with 89 homes for sale and 62 affordable homes on Steelhouse Lane in Wolverhampton.  This project includes funding of £770,000 from the West Midlands Combined Authority Brownfield Land and Property Development Fund.
  • A £42 million development in Priorslee, Telford, providing a selection of 220 homes, with 165 for open market sale, and 55 affordable properties in partnership with Homes England and whg.

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