Partnership housing developer Lovell has contributed to half year results released today (8 August 2017) for the six months to 30 June 2017, by parent company Morgan Sindall Group plc, the construction and regeneration group.
The Group has delivered strong profit growth in the first half of this year with operating profit up 37% to £24.9m (HY 2016: £18.2m) on revenue of £1,307m (HY 2016: £1,148m), a 14% increase on the previous half year. The Group reports an order book of £3,801m, a 5% rise from £3,637m. Adjusted earnings per share were up 46% for the period to 43.6p (HY 2016: 29.8p). The interim dividend has been increased by 23% to 16.0p per share (HY 2016: 13.0p) with the Group confident of another strong performance in the second half of the year.
Lovell’s national forward order book, including its regeneration and development pipeline, exceeds £1.2 billion thanks to new contracts with housing association partners and land-led developments creating both open market and affordable homes. The company expects to complete over 2,000 homes in England, Scotland and Wales during 2017.
Key projects include:
- The Mill, Canton – this £100 million new urban village in West Cardiff at the former Arjo Wiggins paper mill site is one of Wales’ biggest regeneration programmes. The Mill is creating 800 homes: 358 homes for open market sale by Lovell and 442 homes for rent which will be managed by Cadwyn Housing Association for the Tirion Group. The scheme is going ahead with the support of the Welsh Government and financial backing from the Principality Building Society, and is being developed by the Tirion Group in partnership with Lovell. Lovell has just launched its marketing suite and first show apartment at the development.
- A £398 million regeneration programme for three Woolwich council estates, in partnership with the Royal Borough of Greenwich and PA Housing. The redevelopment will deliver 1,500 homes, including 1,000 properties for open market sale and 500 affordable homes for PA Housing.
- A £53 million 220-home development at Clayton-le-Woods, Chorley, Lancashire on land purchased from the Homes and Communities Agency. Construction is set to start by the end of the year on 198 homes for open market sale and 22 affordable starter homes.
- A £25 million, 133-home development in Kinghorn, Fife, in partnership with Kingdom Housing Association and Fife Council. It will create 113 homes for open market sale by Lovell; 10 homes for low-cost ownership through Fife Council and 10 homes for social rent through Kingdom Housing Association.
- A £9.3 million development of 68 brand-new family homes in Ings, east Hull. Lovell has just started work on the scheme which is the latest phase of a major regeneration programme being delivered by developer Compendium Living – a joint venture company set up by Lovell and The Riverside Group – in partnership with Hull City Council.
- A £19.9 million development, Orchard Place, in King’s Lynn. The 130 homes – 120 for sale and 10 affordable homes – are the first to be built through Lovell’s large-scale development partnership with the Borough Council of King’s Lynn and West Norfolk.
- A £19 million, 166-home development for Birmingham Municipal Housing Trust in Perry Common, Birmingham, where construction work began last autumn.
Lovell managing director Jonathan Goring says:
“2017 has started well for Lovell with the company set to complete over 2,000 homes across the UK this year. Our combined national forward order book and regeneration and development pipeline is now worth over £1.2 billion as we continue to benefit from our solid relationships with housing associations and local authorities partners, providing services ranging from design and build contracting and mixed tenure development with open market sale and planned maintenance services.
“The sentiment remains extremely strong in favour of first-time buyers and the Homes and Communities Agency are supporting this with accelerated construction schemes and a proactive promotion of new home starts. This aligns well with the Lovell approach to partnership homes and long term regeneration.
“Progress on flagship schemes includes the start of construction on site at the Electric Quarter in Enfield, a £46 million, 167-home development in Ponders End in partnership with the London Borough of Enfield; our 800-home new urban village in Cardiff – The Mill, Canton – is moving at pace while the first phase of our £398 million scheme in Woolwich is scheduled to deliver its first 118 open market homes this year.”