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 up 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, leveraging a substantial land bank and new infrastructure-driven housing agreements, including a landmark deal with SSEN Transmission for 293 homes.

• Strong land bank with over 7,300 owned and contracted plots, positioning the business for future growth.

• Affordable housing revenue rose 26% to £25.8 million, with robust margins and strong relationships with local councils.

• Dividend policy remains progressive, with a final dividend of 2p per share paid in December 2025 and plans for future increases.

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%).

• Net bank debt reduced by 37% to £39.6 million, and net assets stand at £172 million.

• 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 included £9 million for land purchases and £10 million for interest and tax.

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

Outlook and guidance

• Confident in delivering full-year results in line with expectations, with anticipated improvement in private housing margins in the second half.

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

• Expectation to sign main works agreements and leases for SSEN housing projects within the next 6-12 months.

• Monitoring inflation and interest rates, with hopes for further reductions to support consumer confidence and mortgage competitiveness.

• Excited about significant prospects in the North of Scotland, especially following the SSEN Transmission agreement.