Lovell of Mold: Confidence in the housing market is growing

Reporter:

Staff reporter (Leader Live)

A MOLD-based housing, regeneration and maintenance specialist has contributed to its parent company's half year results.

Lovell , which has local offices in Queen’s Lane, Mold, is owned by Morgan Sindall Group plc, the construction and regeneration group.

Morgan Sindall Group, which operates through five divisions of construction and infrastructure, fits out affordable housing and undertakes urban regeneration and investments.

It says it has delivered half year results in line with expectations for the six months ending June 30, 2014.

Against a continued backdrop of challenging market conditions, operating profit and exceptional operating items was £15.2 million  – 2013: £16.2 million – on revenue of £998 million, a two per cent decrease over the same period last year – 2013: £1,019 million.

The group reports an order book of £2.7 billion, up 14 per cent on the previous year end, supported by a £3.2 billion pipeline of regeneration schemes, up five per cent.

Adjusted earnings per share for the period are 28.6p, down from 31.5p in 2013. The interim dividend has been maintained at 12p per share.

During the first six months of this year, Lovell has 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 £735 million, up 27 per cent on the 2013 year-end figure, with its regeneration and development pipeline at £765 million, up seven per cent on the 2013 year-end figure.

Key housing projects for Lovell in North Wales include a £35 million, five-year housing refurbishment programme for Cartrefi Cymunedol Gwynedd involving the internal and external refurbishment of occupied properties across the county of Gwynedd, and work on social landlord Cartrefi Conwy’s four-year contractors framework in Conwy.

Lovell managing director Stewart Davenport says: “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 Lovell is well placed to capitalise on public sector land opportunities procured by the Greater London Authority and Homes and Communities Agency as the company  is on all their partner panels.

"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," he said.

"We are very pleased to have secured five contracts in Scotland worth over £59 million this year together with numerous refurbishment contracts across the business.

"We remain committed to delivering the complete range of housing solutions for our partners and customers as well as offering a complete maintenance service nationally. We continue to build a solid and balanced platform for growth in 2015 and onwards.”
 

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