- Net debt of £93.8mn to be slashed to £55mn by May 2024
- Improved second-half performance expected
- Strong profit rebound forecast in 2024-25 financial year
Springfield Properties (SPR:76.5p), a housebuilder in Scotland, reported interim results in line with last autumn’s reduced full-year earnings guidance. However, there are reasons to believe that the business has turned a corner.
With private housing reservations impacted by high interest rates, mortgage affordability and reduced homebuyer confidence, the directors took the strategic decision to curtail speculative private housing development by only commencing building homes when they are reserved. In the first half, private completions declined a third to 279 units, the shortfall accounting for 75 per cent of the fall in group revenue to £122mn.