Springfield Properties expects full year profit increase

Springfield Properties executive chairman, Sandy Adam

HOUSEBUILDER Springfield Properties has issued a trading update for the year to 31 May, ahead of its full year results in September.

The company said it made significant sales and profit progress in the first half of 2017/18 with the momentum being maintained through the second half of the year.

It now expects to announce an increase in profit before tax for the full year 2017/18 in line with market expectations and revenue for full year slightly ahead of market expectations.

Springfield Properties said this represents a 43% growth in profit and 27% growth in revenue, compared to the previous year. This “better-than-expected” sales growth was attributed to the accelerated completion of sites acquired from Redrow in 2011, with the profit growth reflecting the margin associated with the Redrow sites not being as high as with other Springfield sites.

The company reported growth in both its private and affordable housing divisions, with the former accounting for approximately 73% of total revenue and highlighted the acquisition of Glasgow-based Dawn Homes, which served to expand Springfield’s private land bank in line with its expansion strategy.

Springfield noted an “increasing demand” from potential development partners in its affordable division.