Springfield Properties posts falls across the business

Scottish housebuilder Springfield Properties has reported a fall in profit and revenue for the year ending 31 May 2024. In its final results, the housebuilder said its revenue fell by 19% – to £266.5m down from £332m at the same time last year. Its adjusted profit before tax fell by 33.8% to £10.6m from £16m last year. The housebuilder said it ended the year “ahead of management’s original expectations due to strong profits on land sales”. However, its land sales for the year increased by 663% compared with 2023. Private housing revenue fell by 27%, affordable housing revenue fell by 12.9% and contract housing revenue was down by 74%. The housebuilder, however, closed the year with 34% less debt than last year. Innes Smith, chief executive of Springfield Properties, said: “Against a challenging market backdrop, we successfully delivered our objectives for the year. “A key priority was reducing our debt, and we’re very pleased that we have exceeded our target. This was achieved through taking decisive action to reduce costs, manage working capital and secure profitable land sales of sites that do not impact on our near-term development pipeline.” She added: “We are now in a strong position to deliver future growth as more favourable economic and trading conditions return.  “We are also encouraged by early indications for an improving backdrop. Many of the key elements that underpin homebuyer confidence are strengthening, including decreasing inflation and the first Bank of England interest rate reduction in over four years.  “While it remains early days, we are pleased we have started to see an improvement in private housing demand since year end – with reservation rates being ahead of the same time last year. Similarly, having actively recommenced signing affordable contracts, contracted order book in affordable housing at year end was also ahead of where it was at the same point in the previous year.”