Springfield increases turnover in first half
Springfield Properties has reported increased profit and turnover in its half year results.
The Scottish housebuilder in its results for the six months to 30 November, reported a 2% increase in turnover from £105.6m to £108m, while its pre-tax profit increased 6% from £3.5m to £3.7m.
The group was boosted by a 26% rise in affordable housing revenue from £20.4m to £25.8m. It said it now has almost all of its forecast affordable housing revenue for the year delivered or contracted.
It also reported a near doubling of its land sales income from £5.1m to £9.8m largely due to its deal to sell six sites in central Scotland, equating to 2,480 plots, to Barratt Redrow.
The group however saw its private housing income fall 9% from £72.1m to £65.4m. Its total completions fell from 361 to 316 units, which it said “reflects the impact of market conditions” as well as its decision to focus on future opportunities in the north of Scotland brought about by demand for housing from infrastructure workers . The latter saw it in recent weeks sign a deal with SSEN Transmission to deliver 293 homes at six sites across the Highlands, Moray and Aberdeenshire.
Springfield struck an optimistic note in its commentary alongside the interim results, saying certainty provided by the November Budget and a reduction in interest rates in December have had “a positive impact on consumer confidence.”
It said: “The group is pleased to note that there has been improvement in consumer confidence since the period end and, alongside usual seasonality and a very strong orderbook in affordable housing, Springfield remains on track to deliver higher revenue in the second half of the year.”
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