The company said that there was excellent build and sales activity across the business in the six months ended 30th November 2021.
Additional sales from completions rolled over due to Covid-19 had boosted the comparable half-year results for the 2021 financial year and so the latest results show a drop in figures such as revenue and profits in comparison. Latest half-year revenue was £87.7m compared to the £94.4m from the first half of 2021. The two main elements of this were private housing revenue of £47.3m (H1 2021: £71.9m) and record affordable housing revenue of £31.7m (H1 2021: £18.3m). The latest gross margin was 18.5% – a drop from H1 2021’s 19.6% that reflects the sales mix and in particular the record revenue from affordable housing in the latest period.
In total, 197 private homes were completed in the period (H1 2021: 299), reflecting the more normal seasonal phasing of completions across the financial year. H1 2021 being boosted by completions that had been scheduled for the end of FY 2020, but delayed due to the public lockdown. Eight new private developments have started recently.
In terms of affordable housing, 204 homes were completed (H1 2021: 126). Springfield is on track to deliver a record year in affordable housing, with year-on-year revenue expected to increase by approximately 35%.
Springfield Properties chief executive officer Innes Smith said: “This was a strong period for Springfield. We continued to experience high demand across the business and our total order book grew to a record level. We maintained excellent build activity, setting us up for an outstanding second half of the year – with handovers starting on eight new private sites since period end. I am pleased at how we effectively managed the material and supply chain pressures facing our industry, and that we were able to maintain impressive levels of customer satisfaction. Sustainability continued to be a focus. We’re proud that we already deliver over 90% of our homes off-site from timber kits, and we will be setting benchmarks for further measures across operations in our ESG strategy later this year.
“We entered the second half on track for strong growth for FY 2022 in line with market expectations. This confidence is based on homes completed, reserved and missived, and our highest ever revenue in affordable housing, giving us significant visibility over our revenue forecasts. Our position was further strengthened, post period, with the acquisition of Tulloch Homes. This enhances our foothold in the Highlands, an area of strategic importance, and will accelerate our growth, being earnings enhancing from the current year. Supported by long-term market drivers and with demand continuing to outstrip supply, the board continues to look to the future with great confidence and to delivering sustainable value for all of our stakeholders.”
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