With profits totalling £37.4m, regional partnership housing firm Lovell has announced another record performance in year-end figures.
Up 12.7% compared with last year, the company says the results have made a significant contribution to the overall performance of parent company Morgan Sindall Group plc, whose year-end financial results were also unveiled at the same time.
A statement says the Group delivered a strong performance in 2022, with “significant strategic and operational progress made across the business despite the market headwinds. The results were another record for the Group and reflected the high quality of the Group’s operations and the talent and commitment of its people.”
Group revenue increased by 12% up to £3,612m while adjusted* profit before tax increased 7% to £136.2m. The Group’s balance sheet remains strong with net cash of £355m, and with a high-quality secured workload of £8.5bn, the Group is looking forward with optimism.
*Before exceptional building safety charge of £48.9m and intangible amortisation of £2.0m
The spokesperson added that Lovell has achieved significantly strong financial results with revenue up 22% to nearly £700m (FY 2021: £572m). Operating profit of £37.4m was up 12.7% on the prior year (FY 2021: £33.2m), along with a Return on Capital Employed of 19%. The secured order book at the year-end was £3.4bn, representing a 23% improvement on last year’s position and a “clear reflection of the successful strategic growth and partnership model”.
Lovell regional managing director, Simon Medler, says: “2022 has seen us deliver record financial results with strong growth achieved in revenue and profits across the board. Throughout both mixed tenure and contracting activities, we’ve increased the volume of units completed to almost 4,000 (YE 2021: 3,000) whilst also increasing our ongoing portfolio of long-term joint ventures and contracting schemes.
“The year end results are fantastic, especially given the continued turbulence in the UK economy and the wider landscape of construction material shortages, inflationary cost increases and slow planning progression in parts of the UK. Our success is undoubtedly testament to the ongoing strength and commitment of the entire Lovell team, our supply chain and our partners who work relentlessly to achieve our ambitions.
“As we enter an even more challenging time for the housing industry, it is pleasing to know that our partnership model offers us some protection from projected market conditions.”
Contracts have been signed for a joint venture between Lovell and Suffolk County Council to build nearly 3,000 homes across Lowestoft, Mildenhall, Bramford, West Row and Newmarket in Suffolk. More details on the partnership are set to be announced in early 2023.