Springfield ‘on track’ as order book hits record
Springfield Properties said it is on track for strong full year growth, despite posting a fall in profits from £8.6m to £6.2m for the half year to the end of November.
It said there is sustained growth in its total order book, including highest ever demand for private housing.
There is substantial work-in-progress to be completed in the second half – including eight new private developments having started completions since the period end.
The Elgin-based firm reported record revenue generated from affordable housing and said lower private housing revenue reflects the exceptional first six months of the previous year due to the COVID-19 rollover. It has received its first revenue from PRS housing.
Post period, the group acquired Tulloch Homes, an Inverness-based housebuilder focused on building high-quality private housing in the Scottish Highlands, to accelerate growth, enhance earnings and strengthen Springfield’s foothold in an area of high demand
It has increased its interim dividend to 1.5p (H1 2021: 1.3p)
Innes Smith, chief executive said: “This was a strong period for Springfield. We continued to experience high demand across the business and our total order book grew to a record level.
“We maintained excellent build activity, setting us up for an outstanding second half of the year – with handovers starting on eight new private sites since period end. I am pleased at how we effectively managed the material and supply chain pressures facing our industry, and that we were able to maintain impressive levels of customer satisfaction.
“Sustainability continued to be a focus. We’re proud that we already deliver over 90% of our homes off-site from timber kits, and we will be setting benchmarks for further measures across operations in our ESG strategy later this year.
“We entered the second half on track for strong growth for FY 2022 in line with market expectations. This confidence is based on homes completed, reserved and missived, and our highest ever revenue in affordable housing, giving us significant visibility over our revenue forecasts.
“Our position was further strengthened, post period, with the acquisition of Tulloch Homes. This enhances our foothold in the Highlands, an area of strategic importance, and will accelerate our growth, being earnings enhancing from the current year.
“Supported by long-term market drivers and with demand continuing to outstrip supply, the Board continues to look to the future with great confidence and to delivering sustainable value for all of our stakeholders.”