Springfield Properties reports record full year results and strong outlook
Housebuilder Springfield Properties has posted record-breaking revenue and profits in its final results for the year ended 30 May 2021.
The company has also reported substantial reductions in net debt and a strong outlook.
The positive results have been driven by the increased desirability of the type of larger housing with plenty of green space that the Group offers as well as two strategic land sales.
With the excellent build and sales activity throughout the year, the Group is on track for strong underlying growth for FY 2022, with substantial visibility. In particular, as at period end, the Group had established its largest-ever order book in affordable housing.
Springfield Properties has reported strong build and sales activity throughout the year with high demand experienced across the business resulting in significant growth in revenue in private and affordable housing.
The firm’s realisation of work in progress and strategic land sales enabled a substantial reduction in net debt to £20.8m at 31 May 2021 from £70.9m at 31 May 2020.
Total completions increased to 973 homes, compared to 727 the year before.
Springfield Properties has also reported sustained progress in advancing land bank with planning approval received for 609 homes during the year and the proportion of land bank with planning permission increasing to 52.4% (31 May 2020: 49.4%).
The firm has also announced a total land bank of 15,281 plots (31 May 2020: 15,882) with Gross Development Value of £3.1bn (31 May 2020: £3.3bn).
Innes Smith, chief executive officer of Springfield Properties, commented: “This has been an excellent year for Springfield. We have achieved our highest ever annual revenue and profit - exceeding £200m in revenue for the first time and by a significant amount - based on record results in both our private and affordable housing.
“We have substantially reduced our net debt position, demonstrating our ability to generate cash, and our strategic land sales towards the end of the year reflect our capacity to realise value from our large, high-quality land bank. I am also pleased that we have been able to maintain high levels of customer satisfaction and we have continued to take steps to improve our build quality, process and the sustainability of our business.”
He added: “Looking ahead, we entered the new financial year delivering against a significant order book, with excellent visibility over full year revenue. We are receiving sustained demand across the business supported by low-interest rates, a competitive mortgage market and a prevailing shortage of homes across all tenures.
“In particular, this year we expect a significant increase in the contribution to revenue from affordable housing where we are delivering against a record order book. Our growth will also be supported by our first revenue from PRS housing and continued progress in private housing. As a result, on an underlying basis (excluding the contribution from land sales) we expect to report strong growth for the full year, in line with market expectations. Consequently, the Board continues to look to the future with confidence and to delivering sustainable value for all of our stakeholders.”