Moray housebuilding firm Springfield Properties has revealed a “very positive” year despite profits dropping for a second year in a row.
Chief executive Innes Smith said the Elgin firm is ahead of where it wanted to be after emerging from a “challenging year” across the group during the year to May 31 2023.
Springfield Properties has posted a profit of £9.7 million in the latest accounts for the year up to May 31 2024, down 36% from the previous year.
Total revenue dropped by 20% to £267m, in line with the firm’s expectations, and Mr Smith said it has been able to clear £15m of debt.
Springfield has picked up numerous contracts in recent times, including one worth £8.2m to deliver 42 high-quality affordable homes in its Elgin South development.
Last year will help us build stronger future, says chief executive
Mr Smith said the firm was very open and honest when reflecting on last year’s results, where the team knew changes had to be made.
He also believes the group is in a great place with its “ambitious” plans in order to progress again next year.
Mr Smith said: “We knew we had to get some of our debt down and so we looked to sign up on affordable housing contracts and sell off some of our land.
“We exceeded targets and ahead of where we expected ourselves to be, all while signing onto some really good contracts.”
Mr Smith has one eye on ongoing and upcoming projects to do with the freeports and power upgrades in the north.
A recent report showed the Highlands will need to build an extra 24,000 houses in the next 10 years to meet current and future accommodation needs.
And he feels Springfield is well placed to contribute towards those figures.
Mr Smith added: “There’s a lot of exciting news coming from the north and that’s where Springfield’s strength is.
“We own around 5,500 plots and a significant number of those are up there. Freeports and power upgrades means there’s a need for new houses.
“Haventus is investing £300m in Ardersier and Sumitomo £350m at Nigg. The amount of work being done has become very clear to us in the past six months.”
Springfield Properties targeting 30% increase in profits in next accounts
Mr Smith said shareholders have been reassured following the latest results, with Springfield resuming dividends after stopping two years ago.
He said: “It’s a very positive time for us and being able to resume dividends after a cautious period reinforces that.
“We gave a nod to investors we are confident of success after the action we have taken in past year.”
Mr Smith is now targeting a 30% increase in profits in its next annual accounts and believes all signs point to success.
He added: “We haven’t factored in the power upgrades stuff, which will only work as more positives for us.
“There are a lot of positive noises towards the economy and with mortgage rates and interest rates dropping there’s a lot more consumer confidence.
“What we’ve also seen already is an upturn in sales over the summer since the results, with double digit growth on last year.”
‘The Highlands could become the new Aberdeen’
With the Inverness and Cromarty Firth Freeports expected to create 8,000-10,000 jobs, Mr Smith is also hoping to see investments in local infrastructure.
He added: “We have a strong relationship with the Highland and Moray councils and have worked together closely.
“Schools, roads and other buildings will also need investments as we build homes and bring new people to the areas.
“With these investments in power upgrades and freeports, the Highlands could become the new Aberdeen.
“We’re speaking to communities and we’ll continue to work with them in order to fulfil needs properly.
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