During the six months ending June 30 2021, Lovell saw its revenue grow to £270 million - a 14% increase on pre-pandemic levels (HY 2019: £238 million).
Its operating profit was £12.1 million compared to HY 2020’s £2.1 million, up 89% on 2019. This was a result of higher mixed tenure revenue and operational improvements, Lovell said. Its operating margin climbed from HY 2020’s 1.2% to 4.5%. The division has a medium-term target of a 6% operating margin.
During the period, Lovell completed 815 units consisting of open market sales and social housing, up on HY 2020’s 412. The homes’ average sales price lifted to £232,000 from last year’s £217,000.
Lovell said it was making significant strategic progress with its partnerships. In the half-year, it began or continued joint venture opportunities with Walsall Housing Group, Trafford Housing Group, Hertfordshire County Council, Abri, Together Housing Group, Flagship Housing Group, Riverside and West Sussex County Council.
Its secured order book at the end of the half-year was a 2% improvement on the same stage as last year, at £1,478 million.
Lovell noted experiencing some increases in lead times for product deliveries to site, with a “limited number” of significant price increases on certain products. “Any additional costs attached to sourcing some materials have generally been offset by a combination of operational savings and sales price inflation,” it said.
Steve Coleby, Lovell’s MD, commented: “Our half-year results reflect the continued hard work and commitment of the entire Lovell team in the delivery of partnership homes. With the addition of several more strategic partnerships, we have increased our order book and created a great platform for further growth.”
In its half-year, construction and regeneration group Morgan Sindall saw trade that was “substantially ahead” of 2019 levels, with revenue up 10% to £1,559 million against H1 2019 and adjusted operating profit increasing 46% to £54.8 million.
