Scots housebuilder Springfield says buyers moving out of city centres and into larger homes with gardens

Springfield Properties, Scotland’s only listed housebuilder, has reported a “strong increase in demand” since reopening its sites as buyers move out of city centres and into larger homes with gardens.

Chief financial officer Michelle Motion, chairman Sandy Adam and chief executive Innes Smith, all of Scottish housebuilder Springfield Properties. Picture: Stuart Wallace

Releasing its full-year results, which were impacted by handover delays caused by lockdown, the group said private reservations were running 24 per cent ahead of the same period last year since reopening its developments.

Chief executive Innes Smith said: “During the year, ahead of the Covid-19 pandemic, we were delivering on our strategy, with notable successes across the business.

“As a result of the lockdown, the completion of homes scheduled to take place in April and May was postponed into 2020/21, however, with these sales under contract, we were able to complete the homes for handover to our customers early in the current financial year.

“Since resuming operations, we have seen a strong increase in demand, with private reservations 24 per cent above the same period last year.

“This reflects both the pent up demand and the increasing desire for buyers to move out of city centres and into larger homes with gardens, which is the type of home that Springfield offers.”

The results for the 12 months to the end of May revealed revenues of £144.4 million, down from £190.8m a year earlier. Operating profit fell to £12.1m from £17.6m. Despite that, gross margin nudged up to 18.9 per cent from 18 per cent.

The figures were impacted by the delivery of handovers scheduled for April and May being pushed back. For the previous two years, these two crucial months had accounted for 30 per cent of the group’s annual revenue.

With these sales contracted under the Scottish missive system, the revenue anticipated for the last two months of 2019/20 is expected to be recognised in the first half of the current financial year, Springfield noted.

On the affordable housing front, the firm reported revenue of £43.4m, up from £42.9m, with 308 completions, down marginally on the year before.

Smith added: “We are in a strong financial position, having increased our credit facility during the year, and as we have recommenced handovers post period end, our net debt position has reduced. Consequently, we look to the future with confidence.”

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