Sale of bigger homes drives Springfield to record income
Innes Smith: ‘excellent year’
Demand for bigger homes with gardens and space to work is expected to boost turnover at Springfield Properties by 49% to £215m – a new annual record.
The company also expects a substantial increase in profit before tax, in line with recently upgraded market expectations.
Net debt has been reduced to approximately £21m at year end, from £71m at 31 May 2020.
The Elgin-based group’s Linkwood Village in Elgin and at three developments launched under the Dawn Homes and Walker Group brands made an important contribution to the revenue growth in private housing.
In affordable housing, the group delivered a substantial increase in revenue and completions in the second half of the year over the first half, representing significant growth for the full year over 2019/20.
Springfield also signed contracts for, and commenced work on, multiple new affordable developments that are due to be delivered in the current year.
This progress is supported by the continued commitment of the Scottish Government to the delivery of affordable housing, with over £3.4bn earmarked for affordable housing funding through to March 2026, as announced in February,
Innes Smith, CEO, said: “This has been an excellent year for Springfield. We have achieved our highest ever annual revenue – exceeding £200m for the first time – based on significant growth in both our private and affordable housing.
“We have substantially reduced our net debt position, demonstrating our ability to generate cash, and our strategic land sales towards the end of the year reflect our capacity to realise value from our large, high-quality land bank.
“A key driver of our growth has been the greater popularity of the spacious homes that we provide, with private gardens and easy access to surrounding green space, particularly at our Village developments.
“At the same time, there continues to be a chronic undersupply of housing of all tenures across Scotland.
“Thanks to the strength of our offer and of our partnerships, which will now include the delivery of homes for the Private Rented Sector, we are exceptionally well-positioned to help meet this housing demand.
“At Springfield, sustainability has always been at our core and we are proud of our group’s performance in relation to ‘people’ and the ‘planet’ as much as we are ‘profit’.
“Following the identification of a board member to lead on ESG, we look forward to sharing how we intend to formalise our approach to sustainability with our full results in September.”