Housebuilder seeks £90m flotation
Springfield to raise £25m in stock market IPO
Sandy Adam: building villages
Scottish housebuilder Springfield Properties is to float on the stock market by the end of the year to help fund its proposed development of five villages.
The Moray-based company will raise up to £25 million on the Alternative Investment Market valuing the company on flotation at between £80m and £90m.
Nplus1 Singer Advisory is acting as nominated adviser and broker to the group in relation to the admission.
It builds a mixture of affordable homes and houses for private sale, concentrating on larger sites across central Scotland.
The company, headquartered in Elgin, is building five “villages”, in Dundee, Edinburgh, Elgin, Perth and Stirling, with three more in the pipeline, which will amount to 10,000 homes.
They will have a gross development value of £1.5bn. Springfield will use some of the money raised to pay for infrastructure on these sites.
It plans to increase the number of homes it builds from about 620 homes per year to 1,000 and is aiming to double revenue over the next five years from the £111m in the year to 31 May, a rise of 22% on the previous 12 months.
Pre-tax profit was £6.7m, up 31% on last year. The company has a land bank of 10,500 plots, which equals around 17 years of development at current levels.
The Scottish government has pledged to build 50,000 affordable homes in this parliament.
Sandy Adam, the firm’s executive chairman, whose grandfather founded the company in 1956, said: “Raising these funds is part of our strategy to secure ongoing growth at the same rate.
“The new funding will enable us to invest in the infrastructure of five new villages in Scotland, and in existing sites, accelerating the delivery of new homes, private and affordable, in new communities.
“Scotland needs more homes countrywide and Springfield is poised to play a significant part in delivering these homes for private individuals and across all tenures in the affordable and social housing sector.”