Springfield Properties (SPR) H1 2026 earnings summary

Executive summary

• Revenue increased to £108.0 million for the six months ended 30 November 2025, up 2% year-over-year, with adjusted profit before tax rising 8% to £4.1 million and net bank debt reduced to £39.6 million from £62.9 million.

• Strategic focus on the North of Scotland leverages a strong land bank and new infrastructure-driven housing agreements, including a landmark deal with SSEN Transmission for 293 homes.

• Affordable housing revenue grew 26% to £25.8 million, with robust demand and strong margins, offsetting a decline in private housing revenue.

• Dividend policy remains progressive, with a final dividend of 2p per share declared and continued confidence in future distributions.

• Total completions fell to 316 homes from 361, reflecting market conditions and a strategic shift.

Financial highlights

• Revenue: £108.0 million (up from £105.6 million), adjusted profit before tax: £4.1 million (up from £3.8 million), and gross margin: 15.8% (down from 17.7%).

• Land sales nearly doubled to £9.8 million, with sales at 1.2x book value.

• Operating profit contributed £27 million in cash inflows; main outflows were £9 million for land purchases and £10 million for interest and tax.

• Net assets stand at £172 million, with a 15% CAGR in net asset value per share since 2017.

• Administrative expenses (excluding exceptionals) fell 6% to £11.6 million, representing 10.7% of revenue.

Outlook and guidance

• Full-year results expected to be in line with expectations, with growth in both private and affordable housing revenue.

• Almost all forecast affordable housing revenue for FY 2026 is already delivered or contracted.

• Margins in private housing projected to improve in the second half, supported by improved consumer confidence and interest rate cuts.

• Anticipates signing main works agreements and leases for SSEN housing projects within the next 6-12 months.

• Board remains confident in continuing progressive dividend policy.