Springfield Properties (SPR) H2 2026 earnings summary

Executive summary

• Achieved a significant turnaround from nearly £100 million in debt two years ago to a positive cash position at year-end, surpassing analyst forecasts and eliminating net bank debt with £1.2m net cash.

• Paid off £20 million deferred consideration post year-end, further strengthening the balance sheet.

• Increased private (up 6%) and affordable (up 10%) housing revenue year-over-year, with strong performance in both segments.

• Announced a 50% increase in dividend to £0.03 per share and launched a share buyback program.

• Significant land bank of 6,797 owned/contracted plots and 6,211 strategic plots, mainly in the North of Scotland.

Financial highlights

• Revenue was £244 million, down from £280 million due to prior year one-off land sales; housebuilding revenue rose to £219.3m (FY25: £205.2m).

• Private housing revenue increased to £165.0m with 474 completions and ASP of £348k; affordable housing revenue grew to £54.3m with 243 completions and ASP of £224k.

• Land sales dropped to £14.1m (FY25: £60.5m).

• Gross margin was 16.4% (18.6% prior year); adjusted for land sales, margin improved to 15.8% from 14.6%.

• Profit before tax and exceptional items was £13 million (prior year: £20 million); adjusted profit before tax was £12.9m, down from £20.1m.

Outlook and guidance

• Expect continued growth in private and affordable housing, with strong fundamentals in the Scottish market and a robust orderbook for FY27.

• Margin improvement anticipated for FY2027, driven by the rental model and new site launches.

• Significant investment planned in land acquisition and site development, especially in the North of Scotland.

• Build-and-lease model expected to generate annuity-like income and future cash inflows from asset sales.

• Well-positioned to capitalize on opportunities in the North of Scotland, especially related to energy infrastructure projects.