HOUSEBUILDER Springfield Properties has revealed revenue is expected to be approximately £215 million this year, which would be a new record for the group and represent year-on-year growth of 49%.
The news was released in a trading update for the year ended 31 May 2021, ahead of final results being announced in September.
Springfield revealed it also expects to post a ‘substantial’ increase in pre-tax profit in line with recently upgraded market expectations. Net debt has been reduced to approximately £21 million at year end, compared with £71 million at the same point a year earlier.
The housebuilder said it experienced ‘strong’ build and sales activity throughout the year, resulting in growth in revenue in both private and affordable housing, ahead of market expectations set at the beginning of the year. The group also made strategic land sales across two of its large developments in Scotland’s central belt to two national housebuilders.
Innes Smith, CEO of Springfield Properties, said, “This has been an excellent year for Springfield. We have achieved our highest ever annual revenue – exceeding £200m for the first time – based on significant growth in both our private and affordable housing. We have substantially reduced our net debt position, demonstrating our ability to generate cash, and our strategic land sales towards the end of the year reflect our capacity to realise value from our large, high-quality land bank.
“A key driver of our growth has been the greater popularity of the spacious homes that we provide, with private gardens and easy access to surrounding greenspace, particularly at our Village developments. At the same time, there continues to be a chronic undersupply of housing of all tenures across Scotland. Thanks to the strength of our offer and of our partnerships, which will now include the delivery of homes for the Private Rented Sector, we are exceptionally well-positioned to help meet this housing demand and provide great places for people to live, building quality homes and creating sustainable communities.
“At Springfield, sustainability has always been at our core and we are proud of our Group’s performance in relation to ‘people’ and the ‘planet’ as much as we are ‘profit’. Following the identification of a board member to lead on ESG, we look forward to sharing how we intend to formalise our approach to sustainability with our full results in September.”