Contractor's profit dips in first half of year
Social housing contractor Lovell has reported a dip in both profit and turnover during the first six months of 2012.
In a half-yearly report from parent company Morgan Sindall, Lovell has revealed a decrease in its operating profit from £8.3 million in the six months to June 2011 to £7.5 million at the same point this year. Turnover fell by more than 10 per cent from £228 million to £202 million.
Lovell’s forward order book stood at £1.4 billion, down from £1.5 billion last year.
Last year saw Lovell boost both its profit and turnover after it took over 70 contracts from stricken repairs and maintenance contractor Connaught. It increased annual turnover by nearly a fifth from £387 million to £427 million, helping it to turn a profit of £18.6 million, up from £16.1 million in 2010.
Overall, Morgan Sindall posted an 8 per cent fall in its half-yearly revenue, turning over £1 billion in the half year, down from £1.087 billion last year. Profit was up 4 per cent from £19.5 million to £20.3 million.
John Morgan, executive chairman of Morgan Sindall, said: ‘We have delivered a solid performance over the first half of 2012 and we are on track to meet our expectations for the full financial year. Despite the challenging economic environment, we are encouraged by the continuing opportunities in growth infrastructure sectors and we remain committed to investing in our regeneration business to drive growth over the medium to long term.
‘Whilst we expect market conditions to remain challenging in the short term, we believe our strong track record of successful delivery and our ability to provide our customers with creative, integrated solutions leaves us well positioned for the future.’