Springfield reports record profit and revenue
Innes Smith: ‘excellent year’
Springfield Properties reported its highest ever profit and revenue, substantial reduction in net debt and a strong outlook.
The Elgin-based company said it had seen strong build and sales activity throughout the year with high demand experienced across the business resulting in significant growth in revenue in private and affordable housing.
Profit before tax in the year to the end of May 2021 soared 81.4% to £18.5m from £10.2m in the previous 12 months.
The board is recommending a final dividend of 4.45p per share making the total for the year of 5.75p, a 187.5% rise on the 2020 payout of 2p.
Chief executive Innes Smith, said: “This has been an excellent year for Springfield. We have achieved our highest ever annual revenue and profit – exceeding £200m in revenue for the first time and by a significant amount – based on record results 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.
“Looking ahead, we entered the new financial year delivering against a significant order book, with excellent visibility over full year revenue.
“We are receiving sustained demand across the business supported by low interest rates, a competitive mortgage market and a prevailing shortage of homes across all tenures.
“In particular, this year we expect a significant increase in the contribution to revenue from affordable housing where we are delivering against a record order book. Our growth will also be supported by our first revenue from PRS housing and continued progress in private housing.
“As a result, on an underlying basis (excluding the contribution from land sales) we expect to report strong growth for the full year, in line with market expectations.
“Consequently, the board continues to look to the future with confidence and to delivering sustainable value for all of our stakeholders.”