Scottish housebuilder, Springfield Properties, has revealed it is expecting a strong financial performance for the current year in line with market expectations, with its revenue set to increase by 5.2 per cent.
A subsidiary of property and construction company, the Springfield Group which specialises in residential development, land sales, and infrastructure projects across Scotland, Springfield Properties anticipates its revenue to rise to £280 million, up from £266 million in 2024.
The rise is attributed mainly to a significant increase in land sales in its latest trading update, in which it also expects to boost pre-tax profits.
A key deal with residential property developer Barratt Redrow involved the sale of 2,480 plots across six sites, playing a pivotal role in enhancing Springfield’s financial results.
While private housing sales were impacted by “subdued market conditions”, with reservation rates stable but completions slightly below expectations, the group’s affordable housing division saw strong growth.
This included a notable improvement in gross margin, attributed to the completion of low-margin legacy contracts from FY2024 and better commercial terms on this year’s projects.
In addition, Springfield made significant strides in its debt reduction strategy, cutting net debt to £21 million, helped by the Barratt Redrow land sale, and ahead of market forecasts (FY2024: £39.9 million).
The company is now focused on opportunities in the North of Scotland, where demand for housing is expected to rise due to renewable energy and net-zero infrastructure projects.
CEO, Innes Smith highlighted the company’s positive outlook.
“This has put us on a firm footing to be able to capitalise on the sizable opportunities in the North of Scotland where there is significant demand for housing to support the development of net zero infrastructure, which is well underway,” he said.
Full results will be announced in September.
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