SPRINGFIELD Properties has provided a trading update for the year ended 31 May, announcing that it had removed its bank debt and had a net bank cash position of approximately £1 million.
This is ‘significantly ahead’ of market expectations of year-end net bank debt of £10 million and a substantial reduction from the group’s highest reported net bank debt of £93.4 million in November 2023.
Springfield said this represents a successful execution of its strategy to reduce debt and reflects its focus on cost discipline and working capital control. It also offers the business greater financial flexibility to capitalise on investment opportunities in financial years 2027 and 2028.
The group added that it expects to report revenue and adjusted profit before tax in line with market expectations, with total revenue for FY 2026 of approximately £245 million.
In private housing, there was strong growth in the second half of the year compared with the first half, reflecting normal seasonality, an increase in average selling price, and the changing housing mix, resulting in year-on-year growth in private housing revenue. In affordable housing, revenue also grew as the group delivered against its ‘strong’ order book and secured new contracts.
Springfield also hailed the ‘excellent’ progress during the year in implementing its new strategy to capitalise on the opportunities in the north of Scotland. Most notably, the group signed an initial agreement with SSEN Transmission to begin delivery of almost 300 homes as part of SSEN Transmission’s investment programme to upgrade the national electricity transmission grid. The initial funding received from SSEN has enabled construction to progress on multiple sites.
The group also continued to strengthen its land bank in the north of Scotland, while the Highland Council’s Masterplan Consent Areas are accelerating the planning process for 800 plots across two sites in key locations.
Innes Smith, CEO of Springfield Properties, said, “We are delighted to have achieved a key strategic priority in eliminating bank debt at year end – which is significantly ahead of market expectations and compares with our peak reported net bank debt over £93m in November 2023. This achievement provides further evidence of disciplined cost control and strengthens our ability to capitalise on the substantial growth opportunities in the north of Scotland.
“We have made excellent progress in delivering on our new strategy to focus on the north of Scotland, which is experiencing unprecedented demand for housing in response to major investment in energy security and renewable infrastructure. We have already reached an important milestone with our agreement with SSEN Transmission and we continue to see substantial opportunity in the region for the years to come.
“Our underlying business remains strong, with the achievement of year-on-year growth in private and affordable housing. We also continue to hold significant landholdings in areas of high demand. Accordingly, we continue to believe Springfield is well positioned for the future and we look forward to reporting on our progress.”
