Springfield, new town builder, ups H1 revenue to £94m

Shares of Springfield Properties, which is building a number of new communities throughout Scotland, rose about 2% on Tuesday after it published results for the six months ended November 30, 2020, showing revenue rose 18.3% to £94.4 million and profit before tax rose 43% to £9 million.

An interim dividend of 1.3p per share was declared, amounting to £1.3 million.

Springfield said the realisation of work in progress enabled a reduction in its net debt to £33.2 million from £68.8m at May 31, 2020.

The company reported a total land bank of 15,029 plots with gross development value of £3.1 billion.

Springfield Properties CEO Innes Smith said: “This has been an excellent six months for Springfield.

“We safely and efficiently resumed construction to complete the homes that had been scheduled for handover at the end of the previous financial year.

“Our sales offices re-opened to significant interest, reflecting pent-up demand and the increasing desirability for the type of housing Springfield provides with spacious homes with private gardens and easy access to plenty of green space.

“As a result, we were able to deliver significant revenue growth and substantially reduce our net debt position, reflecting the operational gearing of the business.

“On behalf of the board, I would like thank our employees for their hard work and dedication during this time, which has enabled us to achieve these great results.

“Springfield has a large, high-quality land bank across almost all the key geographies in Scotland, which we continued to develop and received planning approval for over 450 homes.

“We strengthened our operations by implementing a number of efficiency and rationalisation measures that will reduce our cost base going forward.

“We are also pleased to have agreed, post period, with Sigma Capital that we will be progressing our first housing for the private rental sector at our Bertha Park Village.

“With substantial visibility over our private and affordable housing revenue for the full year, we look forward to delivering significant growth for 2020/21, and expect to be slightly ahead of current market expectations.”

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