Springfield Properties PLC on Wednesday said that it expects to report its highest annual turnover, with a boost in revenue growth despite the disruption in the markets.
Springfield Properties, a Scotland-focused housebuilder delivering private and affordable housing, said it expects revenue growth for its year ended May 31 of 28% at around £330 million, from £257.1 million the prior year.
Springfield said this represented its ‘highest ever annual turnover’ despite the tumultuous nature of the housing market, and was driven by full year contribution from the acquisitions of Tulloch homes and Mactaggart & Mickel homes.
‘The group took decisive action during the year, which has been maintained post period end, to address the uncertain market conditions,’ said Springfield Properties.
The company said pretax profit for its financial year is expected to be in line with market expectations, which the company said in December was expected to be below that of Financial 2022.
Springfield Properties said it implement cost savings of around £3.0 million on a yearly basis in response to market conditions.
Net debt reduced to £68.0 million at the end of the year, down from £73.7 million on November 30.
Chief Executive Officer Innes Smith said: ‘Against a challenging market backdrop, we delivered our highest annual revenue, reflecting our acquisitions as well as organic growth in private housing. While our margins were impacted by significant build cost inflation, particularly in affordable housing, we took decisive action to address this.’
Shares in Springfield Properties were up 3.9% at 67.00 pence in London on Wednesday morning.
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