Partnership housing specialist Lovell has made an large contribution to the 2020 year-end results of parent company Morgan Sindall Group plc, it has been revealed.
Morgan Sindall Group demonstrated resilience in the face of the COVID pandemic, delivering an adjusted operating profit of £68.5m (FY 2019: £93.1m) on revenue of £3bn (FY 2019: £3.1bn).
The group reported a secured order book of £8.3bn, up 9% year-on-year.
With a strengthened balance sheet and net cash of £333m (FY 2019: £193m), the group has ended 2020 with real momentum. It now expects profit to be materially ahead of its previous expectations and slightly ahead of that delivered in 2019.
Lovell reported an operating profit of £16.1m, which was 12% down on the previous year due to COVID related delays on sites; however, the secured order book grew significantly to c.£1.3bn.
The order book reflects the strategic progress the business is making and is further strengthened by the market opportunity available.
Looking ahead, it is expected that continued operational improvements and the benefit of higher revenue will drive margin and profit growth.
During 2020, Lovell built c.2,200 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 regional managing director Stuart Gibbons said: “Since we announced our half year results back in August, the impact of the pandemic continues to be a dominant factor in our lives.
“Yet, despite the complexity and enormity of the issues we face, we have seen higher levels of construction and sales activity.
“It has been particularly rewarding to be able to safely move families into a Lovell home, at a time when ‘home’ has never been more important.
“Going forward, we must not lose sight of the wider issues. Tackling climate change and reducing our carbon footprint is critical; and by harnessing the resources, knowledge, and skills of the wider group, we can make a much bigger impact.
“Greater forward planning and collaboration has been one of the positive outcomes of COVID-19, and as we have demonstrated in the last year, if we remain open-minded and dispense with out-dated methods of doing business, we can make progress faster.”
The London team is currently working on a number of key projects, including:
- Trinity Walk, Woolwich delivering 684 homes working in partnership with London Borough of Greenwich
- Morris North & South, Woolwich delivering 931 homes working in partnership with London Borough of Greenwich
- Ponders End, London Borough of Enfield delivering 167 new homes
- Waterbeach, Welwyn Garden City, comprising 21 new homes as part of a wider 15 year Joint Venture with Hertfordshire County Council
- Southwark A3 working in partnership with London Borough of Southwark developing a 46 apartment scheme
Lovell is part of the Morgan Sindall Group plc, a UK-based construction and regeneration group with revenue of £3bn.
- To view the Morgan Sindall Group plc year end results video, click here.
Image: Lovell regional managing director Stuart Gibbons