Springfield Properties has reported final results for the year ended May 31 2022, with pre-tax profits up 10% to £19.7m and the delivery of more than 1,000 homes for the first time.
The Elgin-based company acquired Inverness-based Tulloch Homes, a housebuilder focused on building private housing in the Highlands, for £54.4m during the period, while also posting a record 1,242 completions and revenue growth across the business.
Some 712 private homes were completed, up from 559 a year earlier, reflecting the acquisition of Tulloch Homes and organic growth.
A planning application was also submitted for a new development of up to 1,000 homes in the Edinburgh commuter belt.
Affordable housing
In terms of affordable housing, 405 homes were completed, up from 363 previously, as the group delivered against its highest-ever contracted order book.
But revenue and margin on affordable-only sites was impacted by cost increases relating to three subcontractors going out of business and the contribution from two large, fixed-price, long-term contracts signed in early 2020.
Springfield added it had “temporarily paused the signing of new long-term fixed price contracts until appropriate inflationary accommodations are introduced.”
The group also established a new partnership with Aberdeenshire Council and joined the Supplier Network of hub South West Scotland.
In contract housing, where the group provides development services to third-party private organisations, 125 homes were completed – up from 51 a year earlier.
This includes delivering the company’s first private rented sector (PRS) housing, with Sigma Capital.
Planning approval was received for 255 plots and 1,558 plots with planning were added through the Tulloch Homes acquisition.
The proportion of land bank with planning permission was 52.1%, compared with 52.4% previously.
Springfield also acquired Scottish housebuilding business of Mactaggart & Mickel
The land bank totalled 16,652 plots at the year-end, worth £3.5 billion in development value terms.
This was up from 15,281 plots, worth a total of £3.1bn, a year earlier.
After the reporting period, Springfield acquired the Scottish housebuilding business of Mactaggart & Mickel, boasting a land bank in locations across the central belt.
The move expanded the Moray group’s footprint in areas with a higher price point and included a timber frame factory near Glasgow.
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