Lovell continues to deliver homes for all in Eastern England despite challenging market
Lovell has shown resilience against a softer housing market in the Eastern England region through its partnership housing model, having delivered circa 300 mixed-tenure homes, with approximately 35% being affordable housing.
Across the region, Lovell has also secured a forward development pipeline of over 15,000 homes.
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.
Robert Adams, Regional Managing Director at Lovell, said: “2023 was a busy and exciting year for the Eastern region, and 2024 looks even brighter. We pride ourselves on working with our partners and communities alike, as we transform and regenerate spaces with a positive impact on the local residents and the environment.
“We are committed to delivering hundreds of quality and sustainable homes to areas where it is most needed, not only to aid regeneration but to build flourishing, long-lasting communities.”
Lovell is working on a number of key projects in the Eastern region, including the Cocoa Works in York, an ongoing £23 million contracting scheme of 103 homes for Clarion Housing. The aim is to deliver open market and affordable housing in the area, which will go a long way to aid the regeneration of Clifton.
Preconstruction has now begun on Skelmanthorpe in Huddersfield, a £19 million private development scheme which will bring forward 46 open market homes.
Work also continues on the joint venture between Lovell and Together Housing Group across the schemes at Howden (175 homes), Kirk Ella (224 homes) and Holmewood Chesterfield (156 homes), where over 550 homes are being developed in these highly desirable areas.
