Springfield Properties PLC Trading Update (0671X)
December 17 2019 - 1:00AM
UK Regulatory
TIDMSPR
RNS Number : 0671X
Springfield Properties PLC
17 December 2019
17 December 2019
Springfield Properties plc
("Springfield" or the "Group")
Trading Update
Springfield Properties plc (AIM: SPR), a leading housebuilder in
Scotland offering private and affordable housing, is pleased to
provide the following update on trading for the six months ended 30
November 2019, ahead of announcing its interim results on 25
February 2020.
Key highlights:
-- On target to report H1 2019/20 revenue growth and gross
margin improvement in line with management's expectations
-- Bertha Park Secondary school now open to new pupils
-- Walker Group acquisition performing as anticipated
-- Collaboration agreement signed with Sigma for private rented sector ("PRS") projects
As noted in the full year 2018/19 results announcement,
Springfield entered the current financial year in a strong
position, experiencing good growth across the business, supported
by sustained market drivers. This momentum was maintained through
the first half of 2019/20, with an increase in completions and
revenue in both private and affordable housing. As a result, and
with the contribution from Walker Group, which was acquired in H2
2018/19, the Group expects to report revenue growth and improvement
in gross margin for the first half of 2019/20, in line with
management's expectations.
Springfield's Village developments have progressed well, and
their appeal is strengthening as they become increasingly
established, adding further amenities for residents. This includes
the opening of Bertha Park Secondary School, the first new
secondary school to be established in Scotland for more than 15
years, and a sports centre at Linkwood, Elgin. At the Group's most
advanced Village developments, Dykes of Gray and Bertha Park,
management estimate that, in total, more than 600 people have moved
into the new homes to date.
During the period, Springfield expanded its geographic presence
with the strategic land acquisition of a private housing
development in Inverness, strengthening the Group's reach in the
Highlands. The Group also continued to make good progress in
affordable housing, including under its local authority framework
agreement for 10 affordable-only developments, with the completion
of one development and beginning construction on two others, as
well as a third affordable development (outside the framework
agreement) also commencing during the period.
Walker Group and Dawn Homes continued to trade in line with
management's expectations and the Group is pleased with the
progress made to date in embedding these acquisitions. In addition,
the Group achieved a key milestone, as announced on 25 September
2019, with the entry into a Collaboration Agreement with Sigma PRS
Management Ltd to acquire and develop sites in Scotland for PRS.
This represents Springfield's first partnership for PRS and the
Board expects it to accelerate Springfield's delivery of homes and
provide a further revenue stream, alongside its existing private
and affordable housing activity.
Innes Smith, Chief Executive Officer of Springfield Properties,
said: "We're pleased to have achieved another period of growth
resulting from sustained progress across our business as we
continue to deliver on our targets. Our acquisitions are performing
well and we are excited about the new opportunities offered by our
partnership with Sigma. The UK is entering a period promising
greater market certainty, which will benefit our customers, our
suppliers and our business. This, combined with a land bank
providing work for at least 16 years and a skilled and dedicated
workforce, gives us continued confidence in our future prospects
and in achieving our goals."
The Group will provide further details at the time of its
interim results announcement on 25 February 2020.
Enquiries
Springfield Properties
Sandy Adam, Executive Chairman
Innes Smith, Chief Executive Officer +44 1343 552550
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N+1 Singer
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Shaun Dobson, James Moat (Corporate
Finance)
Rachel Hayes (Corporate Broking) +44 20 7496 3000
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Luther Pendragon
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Harry Chathli, Claire Norbury, Alexis
Gore, Joe Quinlan +44 20 7618 9100
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END
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