Springfield doubles profits on strong sales growth
Sandy Adam: ‘strong order book’
Springfield Properties doubled its half-year profits as it continued to deliver on housebuilding targets.
Profit before tax increased by 119.7% to £6.1m (H1 2018: £2.8m), primarily due to the higher revenue and improvement in gross margin, additional income from the Dawn Homes acquisition, as well as the first half of the prior year incurring exceptional costs of £0.3m in IPO-related expenses.
Excluding the exceptional item from the prior period, profit before tax increased by 98.8% to £6.1m (H1 2018 adjusted PBT: £3.1m). Revenue rose 38% to £75.7m (2018: £58m).
The company has declared an interim dividend of 1.2p per share, an increase of 20% on 2018 (1.0p).
Sandy Adam, executive chairman, said: “In announcing this set of interim results, I am pleased to be reporting a further period of strong growth for Springfield.
“We have increased revenue from both private and affordable existing sites, and have done this at a faster rate than for the same period last year. Looking forward, we have entered the second half of the year with a strong order book of contracted revenues and a greater geographic reach across Scotland.
“With the sustained market drivers showing no sign of abating, Springfield is in a stronger position than ever to deliver many of the new private and affordable homes needed in Scotland.”
Innes Smith, chief executive, said: “Springfield made great progress during the first half of the year, with sales increasing in both of our divisions and total completions up 35% at 379 new homes.
“Our investment last year in the acquisition of Dawn Homes and our four high calibre Managing Directors has greatly strengthened our business. We are benefiting from their complementary skillsets and experience, and we’re very pleased that all of the great people at Dawn have chosen to remain with the Group.
“This also gives us confidence that our recent acquisition of Walker Group, another established company with a strong product and reputation, will be an equal success. This bulk addition to our land bank also gives us very good visibility in our three-year projections. We look forward to delivering on our targets and continuing to grow our business.”