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Builder upbeat

Springfield benefits from buyers leaving cities

Innes Smith

Innes Smith: ‘solid pipeline’

North of Scotland house builder Springfield Properties said it is benefiting from buyers seeking to move out of city centres and into larger homes with gardens.

It said it was making excellent progress in delivering its order book and had seen a significant increase in demand since resuming operations.

Following a strong return to business after reopening post lockdown, the directors are proposing a dividend for 2019/20 of 2.0p per share (total dividend for 2018/19: 4.4p).

Adjusted pre-tax profits for the year to 31 May fell to £10.2 million from £16.5m as handovers scheduled for April and May were delayed by the COVID-19 lockdown. For the previous two years, these months had accounted for 30% of the Group’s annual revenue. Turnover came in at £144.4m against £190.8m.

The group anticipates total revenue for full year 2020/21 to be significantly higher than in 2019/20.

Innes Smith, chief executive said “Since resuming operations, we have seen a strong increase in demand, with private reservations 24% above the same period last year.

“This reflects both the pent up demand and the increasing desire for buyers to move out of city centres and into larger homes with gardens, which is the type of home that Springfield offers.

“We are delivering on a solid pipeline in affordable housing, with £38.8m of contracted revenue.

“We are in a strong financial position, having increased our credit facility during the year, and as we have recommenced handovers post period end, our net debt position has reduced. Consequently, we look to the future with confidence.”  

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