Springfield Properties (SPR) H1 2026 earnings summary

Executive summary

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

• Strategic focus on the North of Scotland, leveraging a substantial land bank and new infrastructure-driven housing agreements, including a major deal with SSEN Transmission to deliver 293 homes for energy infrastructure workers.

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

• Results are in line with expectations, supported by infrastructure upgrades, Freeport investments, and a progressive dividend policy.

• Total completions fell to 316 homes from 361, reflecting market conditions and a strategic focus on the North.

Financial highlights

• Gross margin was 15.8%, down from 17.7% due to lower private housing margins and prior period's exceptional land sale margin.

• Adjusted profit before tax rose to £4.1m from £3.8m year-over-year.

• Land sales nearly doubled to £9.8m, up from £5.1m, at 1.2x book value.

• Administrative expenses (excluding exceptionals) fell 6% to £11.6m, with cost control and restructuring.

• Net assets stand at £172m, with a CAGR of 15% since 2017 and £24m in dividends paid since IPO.

Outlook and guidance

• Confident in delivering full-year results in line with expectations, with growth expected in both private and affordable housing revenue.

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

• Margins in private housing projected to improve in the second half, with improved consumer confidence and interest rate cuts expected to boost homebuying.

• Expecting to sign main works agreements for SSEN homes within 6-12 months, with further affordable housing contracts anticipated as government funding is secured.

• Board remains confident in continuing a progressive dividend policy and continued focus on debt reduction.