Contracting work sees income tick up at housebuilder
Profit and revenue have increased at Lovell Partnerships.
According to half-year results for Morgan Sindall Group, of which Lovell is a part, operating profit in the housebuilding division rose 16% to £11.7m.
In the six months to 30 June 2024, revenue climbed to £381m, up from £373m in the equivalent period the year prior.
This was driven primarily by a 21% increase in contracting work, including planned maintenance and refurbishment, which totalled £258m in the half year.
The total number of units built increased 19% from 1,328 to 1,584. Mixed-tenure revenue declined by 23% to £123m.
Lovell’s medium term target is to deliver an operating margin of 8% and it said it anticipated its full year operating margin for 2024 to be slightly above last year’s level.
Work in the half-year period included a 350-unit development in partnership with the Aster Group, a 115-unit scheme in Haverford West in partnership with the Pobl Group and 727 units on South Thamesmead in joint venture with Peabody. It has a secured order book of £2.08bn.
Lovell managing director, Steve Coleby, said: “Our partnership housing model, which focuses on long-term partnerships with the public sector, has provided resilience against a softer housing market and demand for contracting has remained strong throughout the first half of the year.
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“We welcome the new government’s recent pledge to create 1.5m homes within the next five years, including freeing up planning restrictions to enable further delivery.
“This will not only unlock a large number of regeneration schemes, but importantly will pave the way for further investment, bringing forward wider opportunities to create a positive and meaningful legacy in the communities we serve.
“Lovell is very well placed to support the government’s national targets and we are ready to deliver.
“Our continued strong performance is testament to our partners, supply chain and our colleagues, and we thank them for their valued commitment to delivering new homes in very challenging circumstances.”
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