Springfield, Scots new town builder, tops £216m

Elgin-based Springfield Properties, which is building a number of new communities throughout Scotland, announced that its revenue for the year ended May 31, 2021, rose 51% to £216.7 million and adjusted profit before tax and exceptional items soared 81.4% to £18.5 million.

Springfield’s total dividend for the year will rise 187.5% to 5.75p.

The company’s share price has risen more than 70% over the past 12 months to give it a curret stock market value of £155 million.

The Elgin firm said it experienced high demand resulting in significant growth in revenue in private and affordable housing, with a “realisation of work in progress” and strategic land sales enabling a reduction in net debt to £20.8 million from £70.9 million a year earlier.

Total completions increased to 973 homes from 727, with sustained progress made in advancing Springfield’s land bank and planning approval received for 609 homes during the year.

Springfield reported a total land bank of 15,281 plots with gross development value (GDV) of £3.1 billion.

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

“We have achieved our highest ever annual revenue and profit — exceeding £200m in revenue for the first time and by a significant amount — based on record results in both our private and affordable housing.

“We have substantially reduced our net debt position, demonstrating our ability to generate cash, and our strategic land sales towards the end of the year reflect our capacity to realise value from our large, high-quality land bank.

“I am also pleased that we have been able to maintain high levels of customer satisfaction and we have continued to take steps to improve our build quality, process and the sustainability of our business.

“Looking ahead, we entered the new financial year delivering against a significant order book, with excellent visibility over full year revenue.

“We are receiving sustained demand across the business supported by low interest rates, a competitive mortgage market and a prevailing shortage of homes across all tenures.

“In particular, this year we expect a significant increase in the contribution to revenue from affordable housing where we are delivering against a record order book.

“Our growth will also be supported by our first revenue from PRS housing and continued progress in private housing.

“As a result, on an underlying basis (excluding the contribution from land sales) we expect to report strong growth for the full year, in line with market expectations.

“Consequently, the board continues to look to the future with confidence and to delivering sustainable value for all of our stakeholders.”