Elgin-based Springfield Properties expects a significant increase in profits and turnover in the second half of its financial year.
A trading statement issued yesterday by the housebuilder, ahead of announcing its full-year results in September, forecast a 43% leap in pre-tax profits and 27% growth in revenue compared to the previous 12 months.
Springfield, which floated on London Stock Exchange’s Alternative Investment Market in October, said the revenue figure was “slightly ahead of market expectations,” while the increase in profits was in line with upgraded guidance it issued in February.
The “better-than-expected” sales growth was due to the accelerated completion of sites it acquired from Redrow in 2011.
The profit growth, it said, reflected the margin associated with the Redrow sites not being as high as with other Springfield developments.
Springfield acquired all eight of Redrow’s sites in Scotland which already had planning permission, as well as its Scottish headquarters in Falkirk. The final site is expected to be completed this month.
During the year, revenue grew in the affordable and private housing divisions, with the latter accounting for approximately 73% of total revenue.
Springfield progressed the development of existing sites as well as acquiring new ones. In particular, it submitted a planning application for its 3,000-home site at Durieshill, Stirling, which the company said represented a “key milestone” as all of its “village” sites are now in the planning permission process, under construction or have started sales.
In the affordable division, Springfield said it continued to see increasing demand from potential development partners, including local authorities and housing associations.
“A key achievement during the year was the completion of the Linkwood View facility in Elgin that was specifically designed for the elderly.
“This development included a number of flats tailored to meet the needs of residents with dementia. Following the success of this development, Springfield is in negotiations to deliver similar facilities for other clients,” the statement said.
In May Springfield acquired Glasgow-based housebuilder Dawn Homes in a deal worth up to £20.1 million.