Springfield Properties shares up on strong trading

Shares of Elgin-based housebuilder Springfield Properties rose more than 5% after it announced its interim results for the six-month period ended November 30, 2017.

Springfield announced increased sales across private and affordable housing — with significant contracted revenue to be delivered in the second half that means it anticipates revenue and profit for full year 2017-18 to be 5-10% ahead of market expectations.

First-half revenue rose 10.5% to £54.8 million and adjusted profit before tax rose 19.6% to £3.1 million.

Springfield had said in a trading update in December it continues to make advances with the development of new villages it is building in the Dundee, Perth, Stirling and Elgin areas.

In its interim results Springfield said it made significant progress on its new village sites during the period with strong sales at Dykes of Gray, Dundee, with sales of £17.2 million to date.

Private housing sales increased 6% to £43 million.

Affordable housing sales increased 40% to £11.7 million.

In affordable, Springfield said it is receiving increasing demand from potential development partners including local authorities and housing associations for provision of affordable housing to meet Scottish government targets of building 50,000 affordable homes by 2021.

Springfield is currently working on affordable housing proposals worth a total of £70 million to £80 million for delivery over the next three years.

Sandy Adam, executive chairman of Springfield Properties, said: “I am delighted to be announcing our first set of interim results as a quoted company and reporting another period of strong growth for Springfield.

“We have increased our revenue from existing sites in both our Private Housing and Affordable divisions while progressing the development of our pipeline of projects.

“In particular, we have invested in the development of our new Villages that will accelerate our building of new homes, private and affordable, in new communities across Scotland.

“We now employ over 500 people and I would like to thank them for their continued support and hard work during this period where we have transitioned to becoming a public company and are about to deliver our 5,000th home since we started the company.

“Looking ahead, we have entered the second half of our financial year with a strong order book of contracted revenues and, together with sustained market drivers including a supportive Scottish Government policy, Springfield is poised to play a significant part in the delivery of the many new private and affordable homes needed across Scotland.

“As a result, the company anticipates revenue and profit for full year 2017-18 to be 5-10% ahead of market expectations.”