Springfield reports ‘record’ annual profit and revenue

Innes Smith

SPRINGFIELD Properties has announced a 19% rise in revenue to £257.1 million for the financial year ended May 31, 2022.

In what was a record year for the housebuilder with 1,242 home completions, there was also a 13% increase in operating profit – from £19.1 million to £21.5 million.

Total dividend per share is 6.20p – an 8% rise from last year’s 5.75p.

712 private homes were completed over the year, which Springfield said reflects the acquisition of Tulloch Homes and organic growth. in terms of affordable housing, 405 properties were completed as the group delivered against its highest ever contracted order book. In contract housing, where Springfield provides development services to third party private organisations, 125 homes were completed.

Innes Smith, CEO of Springfield Properties, said, “This year we achieved our highest ever annual profit and revenue with strong results across private, affordable and contract housing. I am pleased at how we managed the material and supply chain pressures facing our industry so that, while not immune, we were able to mitigate much of the impact.

“In keeping with our strategy, we significantly expanded our business with the acquisitions of Tulloch Homes and, post period, the Scottish housebuilding business of Mactaggart & Mickel – two high quality housebuilders with land in areas of strategic importance. We also achieved a milestone with the delivery of our first housing for the private rented sector.

“We entered the 2023 financial year delivering against a strong order book in private housing, reflecting sustained demand for the type of homes that we provide and the expansion of our business. We have excellent visibility over full year private revenue forecasts based on homes delivered, missived and reserved.

“While the challenging economic backdrop will impact our affordable and PRS housing activity in the short term as we await decisions from the Scottish Government, we are on track to deliver another year of revenue and profit growth overall. Moreover, the fundamentals of the housing market in Scotland remain strong with high demand for homes across all tenures coupled with a national shortage in housing supply.

“As a result, the board continues to look to the future with confidence and to delivering sustainable value for all of our stakeholders.”