Shares of Elgin-based Springfield Properties, which is building a number of new communities throughout Scotland, rose about 12% on Tuesday after it published a trading update saying it expects its revenue and profit to be “significantly” ahead of market expectations.
“Springfield Properties plc, a leading housebuilder in Scotland delivering private and affordable housing, announces that the strong build and sales activity in the first half of the year has been sustained throughout the year with the group continuing to experience high demand across the business,” said Springfield.
“In particular, excellent sales of the group’s private housing have been driven by the increased desirability for the type of housing Springfield offers: more spacious homes, with gardens and greenspace and, especially with the group’s Village developments, that have local amenities within walking distance.
“As a result, the group expects revenue and profit to be ahead of market expectations, reflecting significant year-on-year revenue growth.
“In addition, at the end of the year, the group sold land (a total of approximately 200 plots) across two of its large developments in the Central Belt to two national housebuilders.
“These strategic sales, which are material in nature, reflect the group’s continued focus on realising value from its large, high-quality land bank and strengthening the group’s balance sheet through cash generation.
“As a result, the group expects to report revenue and profit for full year 2020/21 significantly ahead of market expectations, reflecting significant year-on-year growth.
“The group has also continued to substantially reduce net debt throughout the year.
“The group will provide a further update on trading for the year ended 31 May 2021 in July.”