Elgin-based listed house builder Springfield Properties plc said on Thursday it expects to report revenue and adjusted profit before tax in line with market expectations, with total revenue for FY 2026 of £245 million.
In a trading update for year ended May 31, 2026, Springfield said it made excellent progress during the year in implementing its new strategy to capitalise on the “substantial opportunities in the North of Scotland” which are being driven by the requirement for housing “to support the delivery of the incoming energy security infrastructure and renewable development.”
Springfield said it remains “very excited” about its prospects in the North of Scotland.
“Forecasts for expected housing demand in the region are substantial, which the group is well-placed to meet thanks to its strong land bank and established position as a house builder of scale in the area,” said the firm.
“The group is receiving increasing interest from major infrastructure providers who are looking for solutions to their worker accommodation requirements.
“The group continues to monitor developments and currently expects house price inflation from this increased demand to mitigate cost pressures associated with the crisis in the Middle East.
“The conflict highlights the importance of UK energy security and the focus on achieving the transition to renewables underway in the North of Scotland.”
Springfield said as at May 31, 2026, it had removed its bank debt and had a net bank cash position of approximately £1 million.
“This is significantly ahead of market expectations of year-end net bank debt of £10m and is a substantial reduction from the group’s highest reported net bank debt of £93.4m in November 2023.
“This represents a successful execution of the group’s strategy to reduce its debt and reflects its sustained focus on cost discipline and working capital control.
“It also offers Springfield greater financial flexibility to capitalise on investment opportunities in FY 2027 and FY 2028.”
The company added: “In private housing, there was strong growth in the second half of the year compared with the first half reflecting normal seasonality, an increase in average selling price and the changing housing mix, resulting in year-on-year growth in private housing revenue.
“In affordable housing, revenue grew year-on-year, as expected, as the group delivered against its strong order book and continued to secure new contracts.
“The group made excellent progress during the year in implementing its new strategy to capitalise on the substantial opportunities in the North of Scotland, which are being driven by the requirement for housing to support the delivery of the incoming energy security infrastructure and renewable development.
“Most notably, the group signed an initial agreement with SSEN Transmission to commence the delivery of almost 300 homes in the North of Scotland as part of SSEN Transmission’s investment programme to upgrade the national electricity transmission grid.
“The initial funding received from SSEN under this agreement has enabled construction to progress on multiple sites. Agreements for the build and lease contracts are at an advanced stage of negotiation for the first phase of the housing.
“Springfield continued to strengthen its land bank in the North of Scotland with the promotion of additional sites through the ambitious Local Development Plans that are emerging.
“In addition, the Highland Council’s Masterplan Consent Areas are accelerating the planning process for 800 plots across two sites in key locations.”
Springfield said the fundamentals of the housing market in Scotland remain strong.
“There is a critical undersupply of housing across all tenures and the newly formed Scottish Government has reinforced housing as a priority with £4.9bn of investment for affordable housing and £10,000 interest-free shared equity loans to First Time Buyers over the Parliamentary term,” said the firm.
Springfield Properties CEO Innes Smith said: “We are delighted to have achieved a key strategic priority in eliminating bank debt at year end – which is significantly ahead of market expectations and compares with our peak reported net bank debt over £93m in November 2023.
“This achievement provides further evidence of disciplined cost control and strengthens our ability to capitalise on the substantial growth opportunities in the North of Scotland.
“We have made excellent progress in delivering on our new strategy to focus on the North of Scotland, which is experiencing unprecedented demand for housing in response to major investment in energy security and renewable infrastructure.
“We have already reached an important milestone with our agreement with SSEN Transmission and we continue to see substantial opportunity in the region for the years to come.
“Our underlying business remains strong, with the achievement of year-on-year growth in private and affordable housing.
“We also continue to hold significant landholdings in areas of high demand. Accordingly, we continue to believe Springfield is well positioned for the future and we look forward to reporting on our progress.”