Scottish housebuilder to increase revenue after signing deal to sell six sites as it shifts focus to north of Scotland
Springfield Properties has said it will report a “substantial” increase in annual pre-tax profit following a series of land sales.
The housebuilder, in a short trading update today for the year to 31 May, reported a 5.2% increase in turnover from £266m to £280m.
The group signed a deal in February to sell six sites in central Scotland, equating to 2,480 plots, to housebuilding giant Barratt Redrow. Five site sales have completed and the sixth is due in the coming weeks.
The Springfield update said: “The group’s land sales were highly profitable and, as a result, the group expects to report a substantial increase in profit before tax for the year, in line with current market expectations.”
Springfield has previously announced its pre-tax profit nearly trebled from £1.2m to £3.5m year-on-year in the first half of its year.
It added the firm is in discussions about further land sales.
Springfield said the land sales are part of the group’s plan to remove bank debt and become net cash positive by 2027. Springfield said its bank debt at the end of May was £21m, down from £39.9m a year ago.
They are also part of a strategy to shift focus to northern Scotland, as opposed to developing in the centre of the country.
Springfield has previously expressed a desire to exploit anticipated growth in green infrastructure in the north of Scotland, pointing out Scottish and Southern Electricity Networks is investing £31bn into upgrading the electricity network in the region and the project will require around 5,000 workers in 2027.
The group’s annual results will be published in September.
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