According to the most recent figures, during the six months to June 30 2022, the firm’s revenue rose 5% to £284m. Its operating margin improved to 4.9% from HY 2021’s 4.5%.
The business completed 755 mixed-tenure units, down from 815 during the prior year period. At the same time, the average number of open market units per site rose to 169 at the half-year end, from last year’s 122. Lovell said this was in line with its strategy to increase the size of its mixed-tenure sites.
It also said it had been working on key projects, including Royal Victoria Court in Newport, a regeneration scheme on the former Whiteheads steelworks of 50% affordable housing which is underway. The housebuilder has also been selected by Suffolk County Council as its joint venture partner to deliver around 2,800 homes across Lowestoft, Mildenhall, Bramford, West Row and Newmarket.
Lovell signed the government’s developer pledge letter in April. Construction and regeneration group Morgan Sindall said that the inclusion of its regeneration arm, Muse Developments, in the pledge - the group said it received a letter from the government on July 18 asking for the division’s commitment – would potentially cost the group between £40 million and £50 million.
The expenses of the pledge, the group explained, would be separately shown as an exceptional “developer’s pledge” provision/expense “and adjusted for when reporting the group’s adjusted (underlying) trading performance”.
Steve Coleby, Lovell’s, commented: “Our strong half-year results are testament to the ongoing hard work and commitment of the entire Lovell team, our supply chain and our cherished partnerships. Together, we are helping deliver thousands of much-needed new homes across the UK.
“The first half of the year has seen strong demand for high quality, affordable homes whilst our trusted partner status has also helped enhance our order book. We are in a strong position for further growth this year and look forward to building on and forging new partnerships as we continue to deliver the homes of the future."
