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Interim dividend declared

Springfield forecasts profits and income uplift

Sandy Adam- Springfield

Sandy Adam: ‘strong growth’


Springfield Properties, the Elgin-based housebuilder, has announced increased sales across its portfolio and says it expects an uplift in revenue and profit.

In the company’s maiden interim figures since last year’s stock market IPO, it said there had been a rise in demand for private and affordable housing to meet government targets.

The board has declared an interim dividend of 1p per share.

Sandy Adam, executive chairman, said: I am delighted to be announcing our first set of interim results as a quoted company and reporting another period of strong growth for Springfield.

“We have increased our revenue from existing sites in both our private Housing and affordable divisions while progressing the development of our pipeline of projects.

“In particular, we have invested in the development of our new villages that will accelerate our building of new homes, private and affordable, in new communities across Scotland.

“We now employ over 500 people and I would like to thank them for their continued support and hard work during this period where we have transitioned to becoming a public company and are about to deliver our 5,000th home since we started the Company.

“Looking ahead, we have entered the second half of our financial year with a strong order book of contracted revenues and, together with sustained market drivers including a supportive Scottish Government policy, Springfield is poised to play a significant part in the delivery of the many new private and affordable homes needed across Scotland.

“The company anticipates revenue and profit for full year 2017/18 to be 5-10% ahead of market expectations.”

Financial Highlights

 

H1 2017/18

£m

H1 2016/17

£m

Change

Revenue

54.8

49.6

+10.5%

Gross profit margin

15.4%

14.5%

+90bps

Operating profit

3.6

3.1

+16.9%

Adjusted profit before tax*

3.1

2.6

+19.6%

Net debt

13.7

31.1

-55.9%

Profit before tax adjusted for IPO-related costs of £0.3m

Operational Highlights

  • Sales grew across both Private Housing and Affordable divisions in H1 2017/18
  • Completions increased by 6% to 280 new homes (H1 2016/17: 264 completions)
  • Expanded 17+ year land bank: 10,605 plots (31 May 2017: 9,195), 41.6% with planning
  • GDV of land bank: £1.8bn (31 May 2017: £1.6bn)

Private Housing

  • Sales increased by 6% to £43.0m (H1 2016/17: £40.7m)
  • Completions: 184 homes (H1 2016/17: 196)
  • Average selling price: £234k (H1 2016/17: £208k)
  • Planning consent secured during the period for 816 private plots
  • Land bank: 6,895 plots (31 May 2017: 6,372)
  • Significant progress on Village sites during the period with:
    • strong sales at Dykes of Gray, Dundee, with sales of £17.2m to date;
    • construction commencing at Bertha Park Perth and first phase of houses being released for sale; and
    • planning approval received (subject to Section 75 agreement) for 870 homes to be built at Elgin South, Elgin.
  • Expanded geographically for private homes with completion, post period end, of land swap with Persimmon of 62 plots in Dykes of Gray for land in Kinross with a GDV of £14m
  • Post period end, submitted planning application for 3,000-home site at Durieshill, Stirling

Affordable

  • Sales increased by 40% to £11.7m (H1 2016/17: £8.4m)
  • Completions: 96 homes (H1 2016/17: 68)
  • Average selling price: £122k (H1 2016/17: £123k)
  • Planning consent secured during the period for 518 affordable plots
  • Land bank: 3,710 plots (31 May 2017: 2,823)
  • Receiving increasing demand from potential development partners, including local authorities and housing associations for provision of affordable housing to meet Scottish government targets of building 50,000 affordable homes by 2021
  • Springfield is currently working on affordable housing proposals worth a total of £70m-£80m for delivery over the next 1-3 years

 



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