Springfield Properties PLC Trading Update (1205E)
02 July 2019 - 4:00PM
UK Regulatory
TIDMSPR
RNS Number : 1205E
Springfield Properties PLC
02 July 2019
2 July 2019
Springfield Properties plc
("Springfield" or the "Group")
Trading Update
Springfield Properties plc (AIM: SPR), a leading housebuilder in
Scotland offering private and affordable housing, is pleased to
provide the following update on trading for the year ended 31 May
2019, ahead of announcing its full year results on 17 September
2019.
As noted in the interim results announcement on 26 February
2019, Springfield delivered strong growth across its Private
Housing and Affordable Housing divisions in the first half. This
growth has been maintained through the second half of the year,
with an increase in completions, which has been supported by a
strong Scottish housing market across the private and affordable
housing sectors. In addition, management's target of improving
gross margins has been successfully achieved through strong sales
rates and sustained prices combined with tight cost control.
Springfield's Village developments progressed well, with their
appeal strengthening as they become increasingly established. At
Dykes of Gray near Dundee, the most advanced Village, 178 homes
were occupied as at 31 May 2019 (30 November 2018: 136). At Bertha
Park near Perth, the first owners moved in at the beginning of the
second half and 34 homes were occupied by year-end. Works, led by
the local authority, on a new major road connecting the Village
directly to Perth have been completed and a new secondary school is
due to open in August. Also in Private Housing, sales commenced on
three new developments during the second half of the year.
In the Affordable Housing division, the Group continued to make
good progress. For example, under its local authority framework
agreement for 10 developments, the Group commenced the handover of
homes at one of the developments, commenced construction at two
developments, and secured development contracts for another two of
the developments. In the second half of the year, progress was also
made by the Affordable Housing division at Bertha Park with the
first 54 affordable homes reaching an advanced stage of
construction.
Following its acquisition in February 2019, Walker Group
continued to trade as expected and the integration of the business
has progressed positively. In addition, Dawn Homes, which was
acquired in May 2018, continued to perform strongly, in line with
management's expectations.
With the sustained increase in completions and revenue in the
Private Housing and Affordable Housing divisions, and with Walker
Group and Dawn Homes continuing to perform as expected, the Group
expects to report results for the full year 2018/19 in line with
market expectations, representing significant growth over the
previous year with improved gross margins.
Following the acquisition of Walker Group during the second half
of the year, Springfield is in a strong position, with a presence
in almost all of the key geographies within Scotland. The expanded
land bank has secured activity for approximately 18 years and both
of the Group's divisions continue to be supported by strong market
drivers. Consequently, the Board of Directors remains confident
that the Group will continue to achieve sustained growth, in line
with market expectations, and deliver shareholder value.
The Group will provide further details at the time of its full
year results announcement.
Enquiries
Springfield Properties
Sandy Adam, Executive Chairman
Innes Smith, Chief Executive Officer +44 1343 552550
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N+1 Singer
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Shaun Dobson, James Moat (Corporate
Finance)
Rachel Hayes (Corporate Broking) +44 20 7496 3000
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Luther Pendragon
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Harry Chathli, Claire Norbury, Alexis
Gore +44 20 7618 9100
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END
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