Springfield revenue exceeds £200m for first time ever

Innes Smith

SPRINGFIELD Properties has reported the firm’s highest ever revenue and profit for the financial year ended May 31 2021. The houebuilder has increased turnover by 51% to £216.7 million, while pre-tax profit is up 81.4% to £18.5 million.

Total dividend per share was 5.75p, a 187.5% rise on last years 2p.

Net debt has been significantly reduced from £70.9 million to £20.8 million, while total home completions for the year stood at 973 – compared with 2020’s figure of 727.

Springfield said the results have been driven by increased demand for the company’s larger homes featuring plenty of greenspace, as well as two strategic land sales.

The group added that it is also on track for ‘strong underlying growth’ for the 2022 financial year, thanks in part to its ‘largest ever order book in affordable housing’.

CEO Innes Smith said, “This has been an excellent year for Springfield. We have achieved our highest ever annual revenue and profit – exceeding £200m in revenue for the first time and by a significant amount – based on record results 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. I am also pleased that we have been able to maintain high levels of customer satisfaction and we have continued to take steps to improve our build quality, process and the sustainability of our business.

“Looking ahead, we entered the new financial year delivering against a significant order book, with excellent visibility over full year revenue. We are receiving sustained demand across the business supported by low interest rates, a competitive mortgage market and a prevailing shortage of homes across all tenures. In particular, this year we expect a significant increase in the contribution to revenue from affordable housing where we are delivering against a record order book.

“Our growth will also be supported by our first revenue from PRS housing and continued progress in private housing. As a result, on an underlying basis (excluding the contribution from land sales) we expect to report strong growth for the full year, in line with market expectations. Consequently, the Board continues to look to the future with confidence and to delivering sustainable value for all of our stakeholders.”