Springfield Properties (SPR) Trading Update summary

Financial performance and debt reduction

• Bank debt reduced to approximately £40m, surpassing the target of £55m, driven by profitable land sales and cost control.

• Revenue expected at around £266m, down from £332.1m in 2023, reflecting challenging housing market conditions.

• Profit before tax anticipated to be slightly ahead of market expectations due to £28m in land sales.

• Total completions for the year were about 870 homes, compared to 1,301 in the previous year.

Segment performance and outlook

• Private housing revenue expected at £185m, with a lower forward orderbook but steady reservations and maintained prices.

• Affordable housing revenue expected at £46.5m, with new contracts signed for over £50m and 40% growth anticipated in FY 2025.

• On track to meet market expectations for FY 2025, with stable year-on-year revenue forecasted.

Land bank and strategic positioning

• Owned land bank consists of about 5,600 plots, 88% with planning permission, plus strategic options over 3,150 acres (31,500 plots).

• Large land holdings in the Highlands position the group to benefit from expected demand near Inverness and Cromarty Firth Green Freeport.

• Low average cost per plot due to off-market acquisitions without planning, supporting long-term value.