Springfield Properties bullish over full-year results

Scottish housebuilder Springfield Properties has flagged "significant growth" thanks to a buoyant market and key acquisitions.

Executive chairman Sandy Adam, grandson of the founder of Springfield. Picture: contributed.

The firm outlined its progress in a trading update for the year ended 31 May, ahead of unveiling its full-year results on 17 September - and expects to report annual results in line with market expectations.

It hailed robust growth across its private and affordable housing divisions, buoyed by a "strong" Scottish housing market.

Aim-quoted Springfield, led by executive chairman Sandy Adam, added that management's target of improving gross margins “has been successfully achieved through strong sales rates and sustained prices combined with tight cost control”.

It said its Village developments progressed well, and at Dykes of Gray near Dundee, for example, 178 homes were occupied as at 31 May - up from 136 six months previously.

At Bertha Park near Perth, the first owners moved in at the beginning of the second half and 34 homes were occupied by year-end.

Also in private housing, sales started on three new developments in the second half, and turning to its affordable housing arm, the group “continued to make good progress”. Bertha Park has seen the first 54 affordable homes reach an "advanced" stage of construction.

Springfield added that Livingston-based Walker Group, which it acquired in February, continued to trade as expected, with good progress on the integration of the business, while Dawn Homes, which was acquired in May 2018, "continued to perform strongly".

"The group expects to report results for the full year 2018/19 in line with market expectations, representing significant growth over the previous year with improved gross margins," it said.

"Springfield is in a strong position, with a presence in almost all of the key geographies within Scotland. The expanded land bank has secured activity for approximately 18 years and both of the group's divisions continue to be supported by strong market drivers. Consequently, the board of directors remains confident that the roup will continue to achieve sustained growth, in line with market expectations, and deliver shareholder value."