SPRINGFIELD Properties has reported a 5.3% rise in revenue to £280.6 million for the year ended 31 May 2025. Pre-tax profit is up 95.9% to £19 million.
The housebuilder embarked on a new strategy to focus on the opportunities in the north of Scotland driven by energy security infrastructure and renewable development.
Springfield said discussions are at an ‘advanced stage’ with infrastructure providers to satisfy their housing requirements while ‘maximising the value’ of the group’s land bank.
During the financial period, Springfield entered an agreement with Barratt Redrow plc for the profitable sale of 2,480 plots of undeveloped land, primarily in Central Scotland, for £64.2 million in cash. This has accelerated the reduction of the group’s bank debt to £20.9 million (31 May 2024: £39.9 million).
The housebuilder also reported ‘significant progress’ in securing options over land in the north of Scotland, which enabled a submission of circa 1,400 acres of land to the Highland Council’s call for new development sites.
Total housing completions of 799 (2024: 878) were said to reflect the impact of ‘subdued’ market conditions. Springfield said private housing reservation rates ‘remained stable’, but a lengthening of the sales cycle reflected ‘more cautious spending, prolonged decision-making by homebuyers and slower processing by conveyancing lawyers’.
The business saw an increase in affordable housing revenue year-on-year alongside ‘significant improvement’ in gross margin resulting from completion of low-margin legacy contracts and securing new contracts on stronger commercial terms.
Innes Smith, CEO of Springfield Properties, said, “I am pleased with what we achieved this year and how we have positioned ourselves for greater success going forward. We accelerated the reduction of our bank debt and delivered an increase in both profit and revenue, despite sales continuing to be impacted by subdued market conditions.
“We have made the decision to refocus our strategy to capitalise on the substantial opportunities in the north of Scotland driven by incoming energy security infrastructure and renewable development. We have already made excellent progress in implementing this new strategy and are now in advanced discussions with infrastructure providers whereby we expect to enter an agreement in the near term for the build and multi-year lease of housing.
“This would allow us to receive regular income over the course of the lease as well as having further options for monetisation at its conclusion. This reflects our ability to navigate the market and our agility to deliver innovative solutions to meet housing need while maximising the value of our land bank in this area of high demand. We are very excited about the prospects in the north of Scotland, in particular, and we continue to look to the future with great confidence.”
