Springfield’s profit doubles amid commuter belt expansion

Springfield Properties has reported profit and revenue hikes as the Scottish housebuilder broadens to commuter belt development. In its interim results for the six months to 30 November 2018, adjusted pretax profit rose by 97% to £6.1m, up from £3.1m for the same period the previous year. Revenue hit £75.7m, up by 38% from £43.8m. Completions rose by 35% with 379 new homes. Springfield’s gross profit margin increased to 17.2% from 15.4%. Private housing contributed 70% of revenue, with a year-on-year increase of 23.7%. Some 234 homes were completed during the period, and the average selling price was £227,000. There were 145 affordable homes completed, and affordable sales rose by 63%. The average selling price increased to £132,000, which Springfield said reflected changes in the sales mix. Springfield has expanded its 18-year landbank to 15,096 plots, a third of which have planning permission. Its GDV was estimated at £2.9bn in November. Last year, Springfield acquired Dawn Homes which expanded its landbank to Glasgow’s commuter belt with a GDV of £413m. Springfield has continued this strategy into 2019. At the start of February the Scottish housebuilder acquired rival Walker Holdings for £31m, expanding its presence in the high-growth commuter belt surrounding Edinburgh. The addition of Walker’s landbank, outside of the period, will see an additional 346 affordable homes built. Sandy Adam, executive chairman of Springfield Properties, said: “We have increased revenue from both private and affordable existing sites, and have done this at a faster rate than for the same period last year. “Looking forward, we have entered the second half of the year with a strong order book of contracted revenues and a greater geographic reach across Scotland.” Chief executive Innes Smith added: “Our investment last year in the acquisition of Dawn Homes and our four high calibre managing directors has greatly strengthened our business. “This also gives us confidence that our recent acquisition of Walker Group, another established company with a strong product and reputation, will be an equal success. This bulk addition to our landbank also gives us very good visibility in our three-year projections.” To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette