Springfield Properties, the Scottish housebuilder, has flagged an increase in completions and revenue across the business and said it was set to benefit from a “period promising greater market certainty”.
The group, which has been growing rapidly through acquisitions, geographic expansion and joint ventures, said it was on track to report first-half revenue growth and gross margin improvement in line with management’s expectations.
Releasing a trading update, Springfield said it had entered the current financial year in a strong position, experiencing good growth across the business, “supported by sustained market drivers”.
This momentum was maintained through the first half of the 2019/20 financial year, it added, with an increase in completions and revenue in both private and affordable housing.
It noted that its “village” developments were progressed well, with a key attraction being the addition of further amenities for residents. This includes the opening of Perth’s Bertha Park Secondary School – the first new high school to be established in Scotland for more than 15 years – and a sports centre at Linkwood, Elgin.
During the period under review, the group expanded its geographic presence with the strategic land acquisition of a private housing development in Inverness. It also pointed to “good progress” within its affordable housing business, including under its local authority framework agreement for ten affordable-only developments. Meanwhile, the acquired businesses of Walker Group and Dawn Homes continue to trade in line with expectations.
Springfield chief executive Innes Smith said: “We’re pleased to have achieved another period of growth resulting from sustained progress across our business as we continue to deliver on our targets.
“Our acquisitions are performing well and we are excited about the new opportunities offered by our partnership with Sigma. The UK is entering a period promising greater market certainty, which will benefit our customers, our suppliers and our business.
“This, combined with a land bank providing work for at least 16 years and a skilled and dedicated workforce, gives us continued confidence in our future prospects and in achieving our goals.”
The group said it would be providing further details on its performance at the time of its interim results announcement, which is due on 25 February.
Hundreds of new family homes for rent are to be built across Scotland thanks to a partnership deal struck between Springfield and Sigma Capital Group, the Edinburgh-based residential development and urban regeneration specialist.
The deal, outlined in September, saw five cities targeted – Dundee, Edinburgh, Inverness, Perth and Stirling.
Under the new agreement, Springfield will build family homes for Sigma’s PRS property platform, with the majority of them to be built in the former’s village developments.
Smith said at the time: “We are proud to be chosen by Sigma as their first partner in Scotland to deliver homes for the private rented sector.”