Lovell Partnerships builds Morgan Sindall’s profits success

Partnership housing specialist Lovell has made a vital contribution to preliminary results for the year ended 31st December 2019, released today by parent company Morgan Sindall Group plc, the construction and regeneration group.

Morgan Sindall Group plc delivered strong profit growth in 2019, with adjusted profit before tax up 11% to £90.4m on revenue of £3,071m, up 3%.  In addition, the Group’s balance sheet remains strong, with average daily net cash in the year increasing to £109m and year end net cash of £193m.  With its secured workload up 14% to £7.6bn, the Group is well-positioned for future growth and another good year of progress is expected in 2020.

Lovell has seen a 50% increase in operating profit this year compared to 2018. Its strategy of increased investment during a period of sustained growth, has resulted in a combined regeneration secured order book of £1.1 billion.

During 2019, Lovell built more than 2400 homes nationwide ranging from new-build open market homes, private rented sector housing and affordable homes to large-scale refurbishment and housing-led regeneration programmes.

Lovell managing director, Steve Coleby says: “In 2020, Lovell will be celebrating the 50th anniversary of its first partnership development, a major milestone in our history. Our commitment to working with partners with a shared goal to build great places to live – a place where families can grow and communities can thrive is as relevant today as it was in 1970.

‘Our focus remains, to address the housing shortage by working with our clients, leading housing associations and local authorities in long-term, trusted partnerships where our expertise and ability to think innovatively is helping to accelerate housing led-regeneration, sustainable communities and social renewal.

“Our wide-ranging expertise allows us to proactively offer our partners fresh solutions to unlocking land for development. We’re highly motivated to deliver urgently needed high-quality homes across all tenures and look forward to completing work on over 2600 homes this year.”

Lovell’s eight regions are working on key projects including:

  1. A £100 million urban village in Cardiff creating a brand-new sustainable community of 800 houses and apartments with the Tirion Group and Cadwyn Housing Association. The first phase is creating 358 homes for open market sale by Lovell and 102 for Tirion which will be for discounted rent, open market rent and social rent.
  2. King’s Lynn will see the £49 million design and construction of 273 homes as part of a large-scale development programme with the Borough Council of King’s Lynn and West Norfolk.
  3. 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.
  4. On Salisbury Plain Training Area, a £250 million project in partnership with the Defence Infrastructure Organisation is currently underway, providing 917 Service Family homes and associated infrastructure across three sites at Larkhill, Bulford and Ludgershall in support of the Army Basing Programme which includes 4000 personnel and their families returning to the UK from bases in Germany.