Springfield Properties (SPR) Trading Update summary

Financial performance and outlook

• Expects FY 2025 profit before tax in line with market expectations, with revenue rising to £280m from £266m, mainly due to strong land sales.

• Substantial increase in profit before tax anticipated, supported by profitable land sales and improved affordable housing margins.

• Affordable housing revenue increased year-on-year, with gross margin returning to double digits after completing low-margin legacy contracts.

• Private housing completions slightly below expectations due to a lengthening sales cycle, though reservation rates remained stable.

• Further details to be provided in the final results announcement expected in September 2025.

Strategic initiatives and debt reduction

• Entered agreement to sell undeveloped land (2,480 plots across six sites) to Barratt, enabling accelerated debt reduction.

• Bank debt reduced faster than expected, down to £21m at year end from £39.9m, with a target to become net cash positive by FY 2027.

• Accelerated receipt of payment from Barratt, originally scheduled for March 2026, supporting faster debt reduction.

• Ongoing non-binding discussions for further land sales to strengthen financial position.

Strategic focus and market opportunities

• Strategic focus shifting to North of Scotland, targeting opportunities from UK Government-financed net zero infrastructure projects.

• Advanced discussions with stakeholders and progress in securing land options to meet anticipated housing demand.

• Submitted significant number of plots for Highland Council’s Local Plan, positioning to support regional economic stimulus.

• Collaborating with infrastructure providers, government, and local councils to address housing needs for net zero projects.