Market headwinds make little impact on thriving housebuilder

Partnership housing specialist Lovell has posted another set of record-breaking results, with the company’s operating profits soaring to £37.4m – a 12.7% increase on the previous year.

The housebuilder’s success has made a significant contribution to the overall performance of its parent company Morgan Sindall Group, which notched up a revenue increase of 12% and pre-tax profits of £136.2m.

The group says it is “looking forward with optimism” after securing an £8.5bn pipeline of “high-quality” work.

Stuart Penn, Lovell’s regional managing director for the Midlands, said: “2022 has seen us deliver record financial results with strong growth achieved in revenue and profits across the board. Throughout both mixed tenure and contracting activities, we’ve increased the volume of units completed to almost 4,000 (YE 2021: 3,000) whilst also increasing our ongoing portfolio of long-term joint ventures and contracting schemes.”

Lovell posted revenues of around £700m during the period, an increase of 22%.

Penn added: “The year end results are fantastic, especially given the continued turbulence in the UK economy and the wider landscape of construction material shortages, inflationary cost increases and slow planning progression in parts of the UK. Our success is undoubtedly testament to the ongoing strength and commitment of the entire Lovell team, our supply chain and our partners who work relentlessly to achieve our ambitions.

“As we enter an even more challenging time for the housing industry, it is pleasing to know that our partnership model offers us some protection from projected market conditions.”

In the East Midlands, Lovell grew significantly over the last 12 months, progressing six live developments across the region, completing 115 units and upping its headcount to more than 40 since opening its Derby office in 2022.

Beth Bundonis, regional managing director for the East Midlands, said: “The year end results are fantastic, especially given the continued turbulence in the UK economy and the wider landscape of construction material shortages, inflationary cost increases and slow planning progression in parts of the UK.  Our success is undoubtedly testament to the ongoing strength and commitment of the entire Lovell team, our supply chain and our partners who work relentlessly to achieve our ambitions.”

She added: “As we enter an even more challenging time for the housing industry, it is pleasing to know that our partnership model offers us some protection from projected market conditions.”