SPRINGFIELD Properties has delivered a bullish assessment of its future outlook as interim results published this morning revealed a fall in first-half profits and turnover.
The Highland housebuilder declared it was on track to achieve strong growth for the full-year after reporting high demand in the six months ended November 30, with its total order book reaching record level.
Springfield said its performance for the year would also be boosted by its £56.4 million acquisition of Inverness housebuilder Tulloch Homes in December, which brought with it a portfolio of 1,800 plots of land largely paid for and with planning consent.
First-half profit at Springfield dipped to £6.2 million from £9.3m over the same period of 2020, with the decline attributed to the effect on the phasing of completions from the first national lockdown in early 2020. Completions last time were boosted by homes coming through that were originally scheduled for the end of the previous year.
Springfield completed 197 homes in the six months ended November 30, down from 299 the previous time, with turnover dipping to £87.3m from £94.4m.
Chief executive Innes Smith described the comparisons with the first half of the previous financial year as a “freak” and offered a bullish verdict on the outlook.
He said: “This was a strong period for Springfield. We continued to experience high demand across the business and our total order book grew to a record level. We maintained excellent build activity, setting us up for an outstanding second half of the year – with handovers starting on eight new private sites since period end.”
He added: “We entered the second half on track for strong growth for FY 2022 in line with market expectations. This confidence is based on homes completed, reserved and missived, and our highest ever revenue in affordable housing, giving us significant visibility over our revenue forecasts.
"Our position was further strengthened, post period, with the acquisition of Tulloch Homes. This enhances our foothold in the Highlands, an area of strategic importance, and will accelerate our growth, being earnings enhancing from the current year.
"Supported by long-term market drivers and with demand continuing to outstrip supply, the board continues to look to the future with great confidence and to delivering sustainable value for all of our stakeholders.”
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