A “buoyant” private housing market in Scotland and an acquisition that bolstered its presence in the Edinburgh commuter belt have brought a huge boost to results at rapidly-growing housebuilder Springfield Properties.
Yesterday, executive chairman Sandy Adam said the Elgin-based company, which was floated on the London Stock Exchange’s Alternative Investment Market (AIM) two years ago, was “well positioned for future growth”.
Springfield’s results for the year to the end of May showed a 73% leap in pre-tax profits to £16 million, from £9.2m in the previous 12 months. Turnover at the firm rose by more than £50m to £190.8m over the period.
The company said its delivery of private housing had been supported by overall sales volumes in Scotland that grew in the year to the end of April, while declining for the UK as a whole.
House prices also increased 1.3% north of the border in the first half of this year, compared to 0.9% nationally.
Springfield’s acquisition of Livingston-based Walker Group, announced earlier this year, significantly expanded its land bank and sales presence in Edinburgh’s commuter belt.
Turnover from the company’s delivery of affordable housing increased by 15% in 2018-19 to £43m.
Springfield chief executive, Innes Smith, said: “This was another great year for Springfield as we delivered on all of our targets and strengthened our ability to deliver sustained growth.
“In particular, our investments in the acquisition of Dawn Homes, Walker Group and our four high-calibre managing directors have greatly enhanced our business.”
Mr Adam added: “Throughout our history, Springfield’s strategies have been designed to secure growth and future-proof the business.
“We have been successful in achieving this in the past and this continues to be our focus for the future. We are well positioned for continued growth,” added the executive chairman.
