Profits soar at Springfield

Financial Highlights

* Profit before tax for H1 2017/18 adjusted to exclude IPO-related expenses of £0.3m

The Directors of Springfield have also to proposed an interim dividend of 1.2p per share, an increase of 20 per cent compared with the interim dividend for 2017/18 (H1 2017/18: 1.0p).

Operational Highlights

• Strong revenue and gross margin growth across the Private Housing and Affordable divisions
• Completion of new homes increased by 35.4% to 379 (H1 2017/18: 280 completions)
• Expanded 18-year land bank during the period to 15,096 plots (31 May 2018: 12,476), 31.9% of which have planning permission
• Gross Development Value (“GDV”) of land bank at 30 November 2018 was £2.9bn (31 May 2018: £2.4bn)
• Dawn Homes, which was acquired at the end of the previous financial year, performed strongly, in line with management’s expectations
• Significantly strengthened land bank by securing land for a new Village at Gavieside and, post period, acquiring Walker Group, a Livingston-based housebuilder focussed on private housing in the central belt of Scotland with a GDV of £413m

Private Housing Division

• Revenue increased by 23.7% to £53.2m (H1 2017/18: £43.0m)
• Completion of 234 homes (H1 2017/18: 184)
• Average selling price was £227k (H1 2017/18: £234k), reflecting changes in the sales mix
• Planning consent secured during the period for 211 private plots
• Land bank grew to 10,805 plots (31 May 2018: 8,757)
• Significant progress on Village sites:

o   136 homes occupied at Dykes of Gray, with 28 completions during the period. Advanced community infrastructure, including third party application post period for day care nursery

o   First owners moved in at Bertha Park in December 2018 and six homes now occupied

o   Commenced on-site construction at Linkwood (Elgin South)

o   Advanced planning for 3,042-home Village at Durieshill; consent expected in the first half of the next financial year

o   Secured land and, post period, submitted application for Planning Permission in Principle for 2,500-home site at Gavieside

Affordable Housing Division

• Sales increased by 63.0% to £19.1m (H1 2017/18: £11.7m)
• Completion of 145 homes (H1 2017/18: 96)
• Average selling price increased to £132k (H1 2017/18: £122k), reflecting changes in the sales mix
• Planning consent secured during the period for 153 affordable plots
• Land bank grew to 4,291 plots (31 May 2018: 3,719)
• Planning consent in final stage for 237 affordable homes at Dalmarnock and contract negotiations underway with housing association
• Post period, added to pipeline with acquisition of Walker Group land bank that will require 346 affordable homes to be built

Sandy Adam, executive chairman of Springfield Properties, said: “In announcing this set of interim results, I am pleased to be reporting a further period of strong growth for Springfield. 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. With the sustained market drivers showing no sign of abating, Springfield is in a stronger position than ever to deliver many of the new private and affordable homes needed in Scotland.”

Innes Smith, chief executive officer of Springfield Properties, said: “Springfield made great progress during the first half of the year, with sales increasing in both of our divisions and total completions up 35 per cent at 379 new homes. Our investment last year in the acquisition of Dawn Homes and our four high calibre Managing Directors has greatly strengthened our business. We are benefiting from their complementary skillsets and experience, and we’re very pleased that all of the great people at Dawn have chosen to remain with the Group. 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 land bank also gives us very good visibility in our three-year projections. We look forward to delivering on our targets and continuing to grow our business.”