Scots housebuilder delivers ‘strong’ gross margin improvements

Innes Smith

SPRINGFIELD Properties’ interim financial results for the six months ended 30 November 2019 have revealed a 5.4% rise in revenues to £79.8 million.

Pre-tax profit is up 3.4% to £6.3 million, with the housebuilder stating it is on track to achieve growth in this financial year ‘in line with market expectations’.

Completion of new homes has risen by 15.6% to 438. Springfield added that acquisitions are driving ‘strong margin improvement’.

Innes Smith, CEO of Springfield Properties said, “We are pleased to have achieved another period of growth resulting from progress across our business and, in particular, delivering strong improvement in gross margin. Our acquisitions are performing well and we are realising benefits group-wide. We continued to expand geographically with strategic land purchases in Inverness and we made good progress in advancing our developments through the planning system, including receiving consent, post period, for over 3,000 homes at Durieshill, Stirling – the largest detailed planning consent to ever be granted in Scotland.

“Looking ahead, we entered the second half with a strong order book and we are experiencing good growth across the business. Alongside our customers, we are benefiting from the UK having entered a period promising greater market certainty – with an increase in the reservation rate since December. We are also pleased to now be selling homes at three of our Villages and are excited about the opportunities in the private rented sector offered by our partnership with Sigma. Consequently, we remain confident of achieving growth for the full year in line with management expectations and are pleased to have declared an interim dividend 17% above last year.”