Group preserves cash
Springfield ‘notes’ shutdown order, scraps dividend
Sandy Adam of Springfield Properties
Springfield Properties, the Scottish housebuilder, said it will ‘respond’ to calls by First Minister Nicola Sturgeon yesterday for all building sites to close.
The Elgin-based company said further guidance is expected to be given by the Scottish Government on this matter and the group will update the market in due course. In the meantime, it will preserve cash by not paying the previously declared interim dividend.
Ms Sturgeon included building and construction in her list of business activities that should halt operations for three weeks to help combat the spread of coronavirus.
In an update, Springfield said it entered the second half of 2019/20 with a strong order book of contracted revenue for the period to 31 May 2020 and was experiencing good growth across the business.
The COVID-19 outbreak has not negatively impacted the group’s completions or reservations to date. However, the COVID-19 situation is rapidly evolving and it had noted Ms Sturgeon’s comments.
Net debt as of 30 November 2019 was £56m. The group has a £67m credit facility with Bank of Scotland and it has maintained a constructive dialogue over the past few weeks regarding the bank’s support and availability of additional funding if required.