Lovell reports 15% increase in profit in half year
Partnership housing specialist Lovell recorded a £13.9 million profit in the first half of 2022, up by 15% on the previous year, according to new figures released by parent company Morgan Sindall Group.
Overall, the construction and regeneration group delivered a record performance in the first half against a difficult market backdrop, with group revenue increasing by 9% up to £1,698m (HY 2021: £1,559m), while adjusted operating profit increased 4% to £56.9m (HY 2021: £54.8m).
The group demonstrated continued balance sheet strength with net cash at the period end of £274m and has a high-quality order book with a secured workload of £8.5bn.
“Following our strong first half performance and with the current visibility we have of the rest of the year, we now expect to deliver a result for the full year which is slightly ahead of our previous expectations,” the group said.
Lovell has continued to make strong progress in the period, with revenue up 5% to £284m (HY 2021: £270m). Operating profit of £13.9m was up 15% on the prior year (HY 2021: £12.1m) with the operating margin increasing to 4.9% (HY 2021: 4.5%).
Lovell regional managing director, Kevin McColgan, said: “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.
“Sustainability remains a priority, and we are making great progress towards our target of being carbon neutral by 2030.”