AIM listing helps boost profits and revenues at Springfield Properties

Springfield’s Dykes of Gray development in Dundee

Housebuilder Springfield Properties has reported double-digit growth in profit and revenue in its first set of interim results since the company floated on the Alternative Investment Market (AIM).

For the six months to the end of November, Springfield increased its operating profits by 16.9% to £3.6 million from £3.1m during the same period the year before, while adjusted pre-tax profit increased by 19.6% from £2.6m to reach £3.1m.

Completions by the Elgin-based company increased 6% to 280 new homes and the housebuilder grew its land bank to 10,605 plots from 9,195 as at May 31.

Springfield added that in its private housing business, sales increased 6% to £43m, with the average selling price up to £234,000 from £208,000. It reported “significant progress” on a number of sites in Dundee, Perth and Elgin.

In its affordable housing division, it said sales were up 40% to £11.7m. But average selling price was down slightly to £122,000 from £123,000.

Springfield joined the AIM in October last year as it sought to raise up to £25m for the construction of five new “village” housing developments incorporating a total of 10,000 homes on completion.

The developer is currently working on affordable housing proposals worth a total of £70m-£80m for delivery over the next one to three years

Sandy Adam, executive chairman of Springfield Properties, said: “I am delighted to be announcing our first set of interim results as a quoted company and reporting another period of strong growth for Springfield. We have increased our revenue from existing sites in both our Private Housing and Affordable divisions while progressing the development of our pipeline of projects. In particular, we have invested in the development of our new Villages that will accelerate our building of new homes, private and affordable, in new communities across Scotland.

“We now employ over 500 people and I would like to thank them for their continued support and hard work during this period where we have transitioned to becoming a public company and are about to deliver our 5,000th home since we started the company.

“Looking ahead, we have entered the second half of our financial year with a strong order book of contracted revenues and, together with sustained market drivers including a supportive Scottish Government policy, Springfield is poised to play a significant part in the delivery of the many new private and affordable homes needed across Scotland. As a result, the company anticipates revenue and profit for full year 2017/18 to be 5-10% ahead of market expectations.”