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Springfield Properties sees double-digit revenue and profit growth
AIM-quoted housebuilder Springfield Properties reported a double-digit jump in profit and revenue in its maiden interim report card since floating on the market back in October 2017.
Springfield boosted its operating profits 16.9% to £3.6m over the six months to 30 November, while adjusted pre-tax profit grew by 19.6%, from £2.6m to £3.1m.
Completions increased 6%, with the Scottish firm finishing 280 new homes as it grew its land bank to 10,605 plots versus the 9,195 it held as of 31 May.
Springfield highlighted that its private housing business had seen sales increase 6% to £43m on an average selling price of £234,000, up from the £208,000 it reported at the same time a year earlier.
The firm said it saw "significant progress" on a number of sites in Dundee, Perth and Elgin, and that it's affordable housing division witnessed an impressive 40% sales boost to £11.7m; however, average selling prices receded slightly, to £122,000 from £123,000.
Springfield, which joined AIM less than six months ago in order to raise as much as £25m for the construction of five new "village" housing developments, incorporating a total of 10,000 homes on completion, was working on affordable housing proposals totalling £70m-£80m which were set to be delivered between 2018 and 2021.
Gross profit margin moved ahead to 15.4% from 14.5%, helping Springfield reduce debt by a massive 55.9% to £13.7m.
Sandy Adam, executive chairman of Springfield Properties, said: "We have increased our revenue from existing sites in both our Private Housing and Affordable divisions while progressing the development of our pipeline of projects. In particular, we have invested in the development of our new Villages that will accelerate our building of new homes, private and affordable, in new communities across Scotland."
"Looking ahead, we have entered the second half of our financial year with a strong order book of contracted revenues and, together with sustained market drivers including a supportive Scottish Government policy, Springfield is poised to play a significant part in the delivery of the many new private and affordable homes needed across Scotland. As a result, the company anticipates revenue and profit for full year 2017/18 to be 5-10% ahead of market expectations."
As of 1655 GMT, shares had grown 4.98% to 116.00p.