Lovell delivers a significant increase of affordable homes across the North East

In the North East, it is anticipated that Lovell will exchange on two major schemes of around 300 homes, with a value of £75 million. The leading provider of homes in partnership also has a visible pipeline of around 2,500 mixed-tenure homes for all.

While there was a slowdown in the sale of private homes on mixed-tenure sites, due to the cost-of-living crisis and rising mortgage rates, revenue across Lovell Partnerships is up by 20% in the year to £838m, with an operating profit of £30.5m alongside a return on capital employed of 12%.

The secured order book at the year-end was £2.034bn, representing a 3% improvement on last year’s position and a clear reflection of the successful strategic growth and partnership model. These results have bolstered the overall results of parent company, Morgan Sindall Group plc, whose full year results were published to the London Stock Exchange this morning.

The Group delivered a strong performance in 2023 against a difficult market backdrop. The results were another record for the Group and reflected the strength and breadth of the Group’s operations and the talent and commitment of its people.

Group revenue increased by 14% to over £4.1bn, while adjusted operating profit before tax was up 6% to £144.6m. The Group’s balance sheet remains strong with net cash of £461m, and its high-quality secured order book of £8.9bn, up 5% on the prior year leaves the Group well-positioned for the future and on track to deliver a result for 2024 in line with its current expectations.

Paul Devaney, regional managing director for the North East, said: “In 2023, our priority has been finding the best land opportunities that will enable us to build upon and improve the communities that already exist in the region. With this as a focus, it means that whenever we build homes, we can also have a positive impact on the surrounding area.

“With so many fantastic sites being delivered in the North East and with more already in the pipeline, over the coming months, we look forward to starting on site and continuing to showcase our commitment to quality and placemaking to homebuyers across the North East.”

Since launching the North East region at the end of 2022, Lovell has progressed with land acquisitions to lay the foundations for a strong and varied development portfolio, bolstering its presence in the region. Notably, the team began work on 124 new mixed-tenure homes in the mining town of Spennymoor, County Durham.

The North East team have secured land and submitted a subsequent planning application to deliver 32 new homes in Whitburn, South Tyneside, with start on site set for spring.

Lovell also progressed planning permission for 42 new homes in South Otterington, a village in North Yorkshire, and plans were submitted to Hartlepool Borough Council for the creation of 46 new homes in Elwick.

To view the Morgan Sindall Group plc full year results video, click here.

https://www.dailymotion.com/video/x8t0k8c