The CEO of Elgin-based listed house builder Springfield Properties plc said its strengthened balance sheet has enabled the firm to increase its dividend and launch a share buyback programme.
But Springfield CEO Innes Smith said the London stock market “continues to undervalue housebuilders” with Springfield’s share price “remaining materially disconnected from our view of the underlying value of the business, reflecting neither the strength of our balance sheet, the quality of our land holdings or the opportunities available to us in the North of Scotland.”
Smith’s views came as Springfield Properties published results for the year ended May 31, 2026, showing that the group’s underlying business remained resilient, with a year-on-year increase in revenue in both private and affordable housing.
Total revenue fell 13.2% to £243.7 million, as expected, “and reflects the contribution from significant land sales in the previous year.”
Adjusted profit before tax fell 35.8% to £12.9 million. Dividend rose 50% to 3p per share.
Springfield has now eliminated net bank debt and made the final deferred consideration payments, post year end, of £20.7 million for the acquisition of the Scottish housebuilding business of Mactaggart & Mickel Group Limited.
In its outlook, Springfield said: “The board remains very excited about Springfield’s 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 housebuilder of scale in the area.
“The group has already made great progress with a major energy infrastructure provider in the region, and continues to receive increasing interest from other organisations who are looking for solutions to their worker accommodation requirements.”
CEO Smith said: “This has been an excellent year for Springfield. We achieved a key strategic priority of eliminating our net bank debt, which was significantly ahead of market expectations.
“Our underlying business remained resilient, with year-on-year growth in both private and affordable housing.
“We made significant progress in capitalising on the substantial opportunities in the North of Scotland, which are being driven by the incoming energy security infrastructure and renewable development.
“Building on our initial agreement to deliver almost 300 homes across six sites for a major infrastructure provider, we have been engaging with our partner as well as progressing works, and we will be signing the main contract for the first site imminently.
“Looking to the current year, our private housing reservation rate has been steady and we have continued to secure new contracts on favourable terms in affordable housing.
“Our significantly strengthened balance sheet has enabled us both to increase our dividend and launch a share buyback programme.
“We are disappointed that the market continues to undervalue housebuilders, with Springfield’s share price remaining materially disconnected from our view of the underlying value of the business, reflecting neither the strength of our balance sheet, the quality of our land holdings or the opportunities available to us in the North of Scotland.
“We therefore see the buyback as a compelling opportunity to create value for shareholders while demonstrating the Board’s confidence in Springfield’s future prospects.
“With strong operational momentum and significant opportunities ahead, we look to the future with confidence.”