Scottish housebuilder aiming to cut debt through land sales as it re-enters affordable housing market

Springfield Properties said it is on track to meet its targets for the year despite a drop in completions.

In a trading update this morning, the £330m-turnover Scottish housebuilder added it was “confident of meeting market expectation” for the year to 30 November. It has previously said it is expecting adjusted pre-tax profit of £10m to £14m for the year.

Springfield also said it would cut its net bank debt to £55m by 31 May, down from £61.8m at the same period last year. It is looking to sell land to help achieve this and is hoping to raise £9.3m through two sales it has begun negotiations on.

Springfield Properties

Springfield will publish its latest annual figures next February

But it warned that reservation rates “remained stable but subdued” throughout the period while completions have dropped by an unspecified amount.

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It admitted: “Demand compared with the prior year period continued to be impacted by high interest rates, mortgage affordability and reduced homebuyer confidence.”

It said that since re-entering the affordable housebuilding market in May the group has signed affordable housing contracts totalling £24m.

Springfield expects to publish its half-year results in February.