Springfield Properties (AIM: SPR), a leading housebuilder in Scotland offering private and affordable housing, is pleased to provide the following update on trading for the six-month period ended 30 November 2018 ahead of announcing its interim results in February 2019.
As stated, at the time of the full year results, on 18 September 2018, Springfield entered the new financial year with a strong and established pipeline and was experiencing sustained demand underpinned by the continuedrequirement for more homes in Scotland for private individuals and across all tenures in the affordable and social housing sector. During the first six months, this demand supported good progress with completions and revenue in the Group’s private housing and affordable divisions increasing compared with H1 2017/18, with private housing continuing to account for a majority of total revenue. Springfield also progressed the development of existing sites, receiving planning consent on two private housing sites and two affordable sites, and continued to advance the development of the villages.
The acquisition of Dawn Homes at the end of the previous financial year significantly expanded the Group’s land bank in size and into a new region – West of Scotland – as well as providing an established supply chain. In the first six months, Dawn Homes has performed strongly, continuing to grow in line with management’s expectations.
Springfield continues to evaluate opportunities to acquire land that the Group considers attractive and complementary to its existing land bank. Most notably, as announced on 30 July 2018, the Group secured approximately 400 acres of zoned land in West Lothian, Scotland, to develop a 1,900-home site.
Overall, the Group expects to report revenue and profit growth for the first half of 2018/19 in line with management’s expectations and intends to declare an interim dividend for the period.
Demand for housing continues to outstrip supply and there is ongoing support from the Scottish government for developing affordable housing. As a result, the Board is confident of delivering strong growth for full year 2018/19 in line with management expectations.
The Group will provide further details at the time of its interim results announcement.
Innes Smith, Chief Executive Officer of Springfield, said: “We are pleased to report sustained revenue growth across all of our business units and good progress with existing sites as well as securing new sites. Our Dawn Homes acquisition has proved very successful and the business is performing strongly. None of this would have been possible without the skill and hard work of our employees for which we thank them, and we are pleased that our initiatives for employee engagement were recently recognised at the ProShare Awards, where we received the Best New Share Plan award. As a result, with an able team, a solid pipeline and sustained demand for housing in Scotland, we look to the future with confidence.”