Springfield Properties (SPR) H2 2024 earnings summary

Executive summary

• Exceeded key targets, including profit before tax and exceptionals of GBP 10.6 million and net bank debt reduced to GBP 39.9 million, supported by profitable land sales and cash generation.

• Revenue declined to GBP 266.5 million from GBP 332.1 million year-over-year due to challenging market conditions.

• Dividend reinstated at 1p for the year, reflecting confidence in future prospects.

• Large, high-quality land bank maintained, with 88% of owned plots having planning permission.

• Recovery in private housing post year-end, with reservation rates ahead of the same period last year.

Financial highlights

• Revenue was GBP 266.5 million, down 19.8% year-over-year, mainly due to lower private housing sales, partially offset by GBP 28 million in profitable land sales.

• Gross margin improved to 16.3% from 14.4%, and operating margin rose to 6.7% from 6.2%.

• Adjusted operating profit was GBP 17.9 million (prior year: GBP 20.7 million); profit after tax including exceptionals was GBP 7.6 million.

• Overhead costs reduced from GBP 28 million to GBP 26.5 million.

• Net assets at year-end were GBP 158.2 million.

Outlook and guidance

• On track for strong increase in profitability for FY 2025, supported by recovery in both private and affordable markets and a strong contracted order book.

• Build cost inflation expected to be broadly flat for FY 2025.

• Well-positioned for future demand due to large land bank and strategic alliances.