SPRINGFIELD Properties has announced that trading in the first half of the financial year has been in line with management expectations.
In a trading update covering the six months ended 30 November, the housebuilder said demand in private housing has remained ‘stable but subdued’.
Springfield has recommenced signing new affordable-only housing contracts, with around £24 million of new contracts entered into. Two profitable land sales have also been agreed in H1 2024 for a total of £9.3 million.
Net bank debt at 30 November 2023 was around £94 million, with Springfield stating the firm is on track to meet its target of reducing net bank debt to around £55 million by 31 May 2024.
The group added that it continues to carefully manage working capital by commencing to build private homes when they are reserved and maintaining ‘tight control’ over costs. Build cost inflation has continued to reduce as anticipated, and is expected to be around 4% for H1 2024.
Springfield expects results for the first half of 2024 to be in line with expectations. Growth is anticipated in H2 over H1 across the business, in line with ‘usual seasonality’, and with a ‘significant contribution’ from land sales.
Looking further ahead, the board revealed it is encouraged by the early indications of a return in homebuyer confidence, with inflation reducing and the Bank of England holding interest rates for two consecutive months. Build cost inflation also continues to moderate and there is greater availability of materials and subcontractors.
The group will provide further details in its interim results announcement, which is expected to be announced in February.
