- Annual pre-tax profit rises 81 per cent to £18.5m on 51 per cent higher revenue of £216m.
- 973 properties completed, 33 per cent higher than in 2019/20 financial year.
- Record affordable housing order book of £91.5m.
- Scottish house price inflation 11 per cent in 12 months to 31 May 2021.
Springfield Properties (SPR: 153p), a housebuilder focused on developing a mix of private and affordable housing in Scotland, flagged up its buoyant trading performance in a pre-close trading in early summer when analysts upgraded their full-year pre-tax profit estimates by 20 per cent on record levels of revenue (‘Exploiting margins of safety’, 1 June 2021). Importantly, the strong momentum has continued into the new financial year.
Springfield’s affordable homes division delivered 380 completions in the 12 months to 31 May 2021 and lifted its revenue contribution by almost 30 per cent to £55m, accounting for 25 per cent of the group total. The unit has a record order book of £91.5m for delivery over the next two years, significantly de-risking sales visibility. Ongoing projects include the construction of 104 affordable flats at The Wisp, Edinburgh with PfP Capital, and 144 homes at Dalmarnock, Glasgow for West of Scotland Housing Association. The two contracts have a combined value of £36.7m excluding follow-on work on a further 132 homes. The Scottish Government has earmarked almost £3.5bn for affordable funding through to March 2026, supporting demand for Springfield’s 4,200 plot strong land bank which has a gross development value (GDV) of £542m.