Lovell doubles profit in latest financial results

Kevin McColgan, regional managing director of Lovell

PARTNERSHIP housing specialist Lovell has announced today that it has delivered its most profitable year in the company’s history.  Figures reported this morning by parent company Morgan Sindall Group plc, the construction and regeneration group, reveal that Lovell has doubled its profit compared to 2020.

2021 has been an excellent year for the Group, with a record set of results. Group revenue rose 6% from 2020, delivering an adjusted operating profit of £131.3m (FY 2020: £68.5m) on revenue of £3.2bn (FY 2020: £3.0bn). The Group reported a secured order book of £8.6bn, up 4% on the year-end. With a strong balance sheet and net cash of £358m (FY 2020: £333m), the Group is confident of achieving another good year of progress in 2022.

Lovell had a very strong year, with significant strategic and operational progress made.  Revenue for the year was up 21% to £572m (FY 2020: £474m).   Operating profit increased substantially, more than doubling to £33.2m, an increase of 108% (FY 2020: £16.0m). The operating margin increased to 5.8%, up from 3.4% supported by the higher mixed-tenure and contracting revenue as well as benefitting from continued operational efficiencies. 

The secured order book at the year-end was £1,498m, an increase of 4% on the prior year-end (FY 2020: £1,445m).

Lovell regional managing director, Kevin McColgan says: “Throughout the last two years, in the face of extremely challenging trading conditions, we have been relentless in our ambition to work with our partners to build the nation’s much needed homes.  While our financial performance has exceeded previous results, it is the strength and unity of our team, that must be acknowledged for the successful delivery of over 3000 homes nationwide.

“We are in great shape, and we go from strength to strength, forming long-term partnerships with other like-minded organisations, building on our reputation as a trusted and agile business.  In just the last few weeks we have completed the handover of our Claish Farm development near Stirling and are thrilled to have received planning consent for our new development, Glow Garren in Hamilton. The site which was previously the Philips Lighting factory will now compose of 123 private and 40 affordable new homes. We are looking forward to starting on site this April, with first units ready by the end of this year.”

“The future is incredibly bright for Lovell and as we enter a new phase in our growth strategy, we remain entirely focused on working in partnership to build many more high quality, affordable homes.”

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