8th Jul 2025 12:02
(Alliance News) - Springfield Properties PLC on Tuesday said it expects to report a revenue rise for the financial year ended in late May, citing a sharp climb in land sales.
The Elgin, Scotland-based based housebuilder anticipates revenue of GBP280 million in financial 2025, up 5.1% from GBP266.5 million it had reported for financial 2024.
This was mostly driven by "significant" growth in land sales, including via its agreement with Barratt Redrow PLC.
In February, Springfield had announced the "profitable" sale of 2,480 plots of undeveloped land with planning consent across six sites for GBP64.2 million to Barratt. The sale was via BDW Trading Ltd, the principal operating subsidiary of Barratt.
At the time, Springfield said: "Proceeds from the land sale will be received over four years and will be used to accelerate the removal of the group's outstanding bank debt and to capitalise on the significant growth opportunities emerging in the north of Scotland."
Further, on Tuesday Springfield said there was an on-year rise in revenue and a "significant" improvement in gross margin via affordable housing, in line with market expectations.
It noted that the improvement in gross margin was mainly due to the firm having completed its low-margin legacy contracts at the end of financial 2024, with the contracts delivered in financial 2025 "having much stronger commercial terms."
In private housing however, Springfield reiterated that it continued to be impacted by subdued market conditions, with reservation rates stable compared with the second half of financial 2024.
The company added that it expects to become net cash positive by financial 2027.
Chief Executive Officer Innes Smith said: "I am pleased that we have continued to accelerate the removal of our bank debt, keeping us on track to remove bank debt by the end of FY 2027, and achieved an increase in profit and revenue for the year. This reflects our profitable land sales to Barratt and a substantial improvement in our affordable housing gross margin, which has returned to double digits.
"This has put us on a firm footing to be able to capitalise on the sizable opportunities in the north of Scotland where there is significant demand for housing to support the development of net zero infrastructure, which is well underway. We are working with the infrastructure providers, the Scottish government and the Highland and Moray councils to address this need, and we look forward to reporting on our progress."
Springfield shares were 1.0% higher at 101.50 pence each on Tuesday around midday in London.
By Tom Budszus, Alliance News slot editor
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Related Shares:
Springfield Pr.Barratt Redrow