Springfield Properties PLC Trading Update (7508D)
01 Julio 2021 - 1:00AM
UK Regulatory
TIDMSPR
RNS Number : 7508D
Springfield Properties PLC
01 July 2021
1 July 2021
Springfield Properties plc
("Springfield" or the "Group")
Trading Update
Springfield Properties plc (AIM: SPR), a leading housebuilder in
Scotland delivering private and affordable housing, provides an
update on trading for the year ended 31 May 2021, ahead of
announcing its final results in September 2021.
Highlights
-- Full year 2020/21 revenue expected to be approximately
GBP215m, representing year-on-year growth of 49% and the Group's
highest ever annual turnover
-- Growth driven by increased sales in private and affordable
housing and contribution from strategic land sales
-- Substantial increase expected in profit before tax, in line
with recently upgraded market expectations
-- Net debt reduced to approximately GBP21m at year end,
achieving a GBP50m reduction compared with GBP71m at 31 May
2020
Springfield saw strong build and sales activity throughout the
year with high demand experienced across the business. This
resulted in significant growth in revenue in private and affordable
housing, ahead of market expectations set at the beginning of the
year, with private housing continuing to be the largest contributor
to Group revenue. In addition, and as previously announced, at the
end of the year, the Group made strategic land sales, which were
material in nature, across two of its large developments in the
Central Belt to two national housebuilders. As a result, the Group
expects to report revenue for full year 2020/21 of approximately
GBP215m and profit in line with recently upgraded market
expectations, reflecting significant year-on-year growth. The Group
also substantially reduced net debt to approximately GBP21m at 31
May 2021 compared with GBP71m at the same point of the prior
year.
In private housing, the Group achieved excellent sales at its
developments across Scotland, reflecting the increased desirability
for the type of housing the Group offers. The Group provides homes
that are larger, with space for home offices and with gardens,
which are in semi-rural locations. In particular, completions at
Springfield's Linkwood Village in Elgin and at three developments
launched under the Group's 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. The Group 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 GBP3.4bn earmarked for
affordable housing funding through to March 2026 (as announced in
February 2021).
Innes Smith, CEO of Springfield Properties, said: "This has been
an excellent year for Springfield. We have achieved our highest
ever annual revenue - exceeding GBP200m 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 greenspace, 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 and
provide great places for people to live, building quality homes and
creating sustainable communities.
"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".
The Group will provide further details in its final results
announcement.
Enquiries
Springfield Properties
Sandy Adam, Chairman
Innes Smith, Chief Executive Officer +44 1343 552550
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N+1 Singer
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Shaun Dobson, James Moat, Rachel Hayes
(Investment Banking) +44 20 7496 3000
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Luther Pendragon
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Harry Chathli, Claire Norbury, Joe
Quinlan +44 20 7618 9100
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