Springfield Properties shares up on strong reservations

Shares of Springfield Properties, which is building a number of new communities throughout Scotland, rose about 13% on Tuesday after it said it received reservations for 24% more homes in the first quarter of its 2020-2021 year than in Q1 of 2019-2020.

Springfield said it anticipates total revenue for full year 2020-21 “to be significantly higher than in 2019/20, with substantial visibility.”

The strong outlook was delivered as Springfield reported revenue fell 24.3% to £144.4 million for the year to May 31, 2020, and profit before tax and exceptional items fell to £10.2 million from £16.5 million.

Dividend for 2019-20 will be 2p per share, down from 4.4p.

Springfield Properties CEO Innes Smith said: “Since resuming operations, we have seen a strong increase in demand, with private reservations 24% above the same period last year.

“This reflects both the pent up demand and the increasing desire for buyers to move out of city centres and into larger homes with gardens, which is the type of home that Springfield offers.

“We are delivering on a solid pipeline in affordable housing, with £38.8m of contracted revenue.

“We are in a strong financial position, having increased our credit facility during the year, and as we have recommenced handovers post period end, our net debt position has reduced.

“Consequently, we look to the future with confidence.”