Elgin-based housebuilder Springfield Properties, which went public last year, said on Monday it “continues to evaluate opportunities to acquire land” as demand for housing in Scotland continues to outstrip supply.
Springfield is building a number of new villages throughout Scotland.
In a trading update for the six months to November 30, 2018, Springfield said it expects to report revenue and profit growth for the first half of 2018-19 in line with management’s expectations and intends to declare an interim dividend for the period.
In September, Springfield announced its maiden annual results — for the year ended May 31, 2018 — reporting that total revenue increased 27% to £140.7 million and adjusted profit before tax rose 46% to £9.8 million.
On Monday, Springfield said: “As stated, at the time of the full year results, on 18 September 2018, Springfield entered the new financial year with a strong and established pipeline and was experiencing sustained demand underpinned by the continuedrequirement for more homes in Scotland for private individuals and across all tenures in the affordable and social housing sector.
“During the first six months, this demand supported good progress with completions and revenue in the Group’s private housing and affordable divisions increasing compared with H1 2017/18, with private housing continuing to account for a majority of total revenue.
“Springfield also progressed the development of existing sites, receiving planning consent on two private housing sites and two affordable sites, and continued to advance the development of the villages.
“The acquisition of Dawn Homes at the end of the previous financial year significantly expanded the Group’s land bank in size and into a new region – West of Scotland – as well as providing an established supply chain. In the first six months, Dawn Homes has performed strongly, continuing to grow in line with management’s expectations.
“Springfield continues to evaluate opportunities to acquire land that the group considers attractive and complementary to its existing land bank. Most notably, as announced on 30 July 2018, the Group secured approximately 400 acres of zoned land in West Lothian, Scotland, to develop a 1,900-home site.
“Overall, the Group expects to report revenue and profit growth for the first half of 2018/19 in line with management’s expectations and intends to declare an interim dividend for the period.
“Demand for housing continues to outstrip supply and there is ongoing support from the Scottish government for developing affordable housing.
“As a result, the board is confident of delivering strong growth for full year 2018/19 in line with management expectations …”
Springfield CEO Innes Smith said: “We are pleased to report sustained revenue growth across all of our business units and good progress with existing sites as well as securing new sites.
“Our Dawn Homes acquisition has proved very successful and the business is performing strongly …”