Lovell confident for growth in 2015 and beyond
AFFORDABLE housing, regeneration and maintenance firm Lovell, part of the Morgan Sindall group, has said it continues to build a solid and balanced platform for growth in 2015 and beyond.
The company, which has regional offices at Woodgate Valley, Halesowen, made the pledge following the release of its parent’s half year report.
Morgan Sindall, which operates through five divisions of construction and infrastructure, fit out, affordable housing, urban regeneration and investments, said it had delivered results in line with expectations.
It said that against a continued backdrop of challenging market conditions, operating profit before amortisation and exceptional operating items was £15.2m (2013: £16.2m) on revenue of £998m, a 2% decrease over the same period last year (2013: £1,019m).
The group’s order book of £2.7bn was up 14% on the previous year end (2013: £2.4bn), supported by a £3.2bn pipeline of regeneration schemes, up 5% from £3bn last year.
During the first six months of the year Lovell said it had been working with housing associations and local authorities on new affordable housing developments and major housing refurbishment schemes, regeneration programmes and repairs and maintenance services across the UK.
The company’s order book now stands at £735m, up 27% on 2013 year-end, with its regeneration and development pipeline at £765m, up 7% on the 2013 year-end.
Key housing projects for Lovell in the Midlands include:
• An £8m, three-year housing refurbishment programme for Dudley Metropolitan Borough Council.
• A £51m contract to build 346 homes for the Defence Infrastructure Organisation at Beacon Barracks, Stafford, which began on site in May 2014.
• Five new-build housing contracts totalling £17.3m for Birmingham City Council through the Birmingham Municipal Housing Trust Framework, including a £5.5m 59-home development at Perry Common which began in March 2014.
• A £7.8m scheme to carry out external refurbishment work to four blocks of flats for Sandwell Metropolitan Borough Council. Work began in November 2013.
• A £35m, three-year framework contract to refurbish 2,000 homes for Sandwell Metropolitan Borough Council.
• A £9.2m development of 98 homes in Walsall creating affordable homes for Walsall Housing Group and properties for open market sale. Work began on site in February 2014.
• A £30m, 229-home scheme with Sandwell Metropolitan Borough Council, which is being delivered through Compendium Living, and which will provide affordable and open market homes. Construction began in March 2014.
• Housing refurbishment schemes worth £40m for Birmingham City Council through the Constructing West Midlands framework.
Lovell managing director Stewart Davenport said: “The first half of 2014 has seen the confidence in the housing market continue. First-time buyers returned in greater numbers to the market supported by the Government’s Help to Buy initiative which has resulted in increased sales activity in all our regions.
“This has enabled us to invest in new opportunities focused on mixed tenure projects developed in partnership with housing associations and local authorities.”
He said the business was well placed to capitalise on public sector land opportunities procured by the Greater London Authority and the Homes and Communities Agency.
“Contracting, in particular new build, remains competitive and we continue to maintain a healthy and well balanced forward order book through selective pursuit of opportunities. We continue to build a solid and balanced platform for growth in 2015 and onwards,” he added.
