Scottish market outlook positive for Springfield

Scottish housebuilder Springfield Properties completed 878 homes (2023: 1,301) in the year ending May 31 2024 and delivered adjusted profit before tax of £10.6 million (2023: £16.0 million), ahead of original expectations, the firm said.

Private housing revenue reached £184.7 million (2023: £253.4 million) “as demand in the year was impacted by high interest rates, mortgage affordability, the cost-of-living crisis and reduced homebuyer confidence”. Affordable housing revenue of £47.0 million (2023: £53.9 million) reflects the group’s decision in the prior year to pause entering into new affordable-only fixed price contracts.

The firm says that it delivered a key objective of “significantly” reducing net bank debt, exceeding the target of £55.0 million with net bank debt of £39.9 million (May 31 2023: £61.8 million). It also took action taken to reduce costs and manage working capital across the business

Springfield has a total owned land bank of 5,593 plots, 88% with planning permission and a strategic land bank of a further 3,147 acres, equating to 31,471 plots

The firm says it has: “One of the largest land banks in Scotland, including significant holdings in the north of the country where the group will benefit from the expected sharp …