Springfield Properties (SPR) investor relations material

Executive summary

• Profit before tax increased by 90% year-over-year to £20.1 million, driven by £60.5 million in land sales and improved affordable housing margins, despite a subdued private housing market.

• Revenue increased by 5.3% year-over-year to £281 million.

• Dividend doubled to 2p per share, reflecting confidence in results and improved financial position.

• Strategic focus shifted to the north of Scotland, targeting housing demand from major infrastructure and renewable energy projects, leveraging a substantial land bank and advanced lease negotiations.

• Net bank debt reduced to £20.9 million from £40 million, aided by major land sales.

Financial highlights

• Gross margin improved to 18.6% from 16.3%, mainly due to profitable land sales and better affordable housing margins.

• Operating profit increased 40.8% to £25.2 million, with operating margin rising to 9.0% from 6.7%.

• Profit after tax including exceptional items was £14.1 million, up 85.5% year-over-year.

• Net assets increased to £171 million, with NAV per share growing at a 15% CAGR since 2017.

• Net bank debt reduced by 47.6% to £20.9 million.

Outlook and guidance

• Strong growth anticipated in the north of Scotland, driven by infrastructure, freeport, and renewable energy investments.

• Housing demand expected to rise with 10,000+ new jobs and a local plan calling for 24,000 new homes over 10 years.

• Advanced negotiations for multi-year leasing agreements expected to maximise land bank value.

• Affordable housing outlook strengthened by increased government funding and policy support.

• Company plans to retain and lease new homes to infrastructure providers, then sell or rent to the private market.