Record profit and revenue for house builder Springfield Properties

House builder Springfield Properties has reported record profits and revenue in its annual results for the year ending May 31.

During the year the group also completed 1,242 homes, an increase of 27.6% from the 973 completions in 2021, marking the first time Springfield has delivered more than 1,000 homes in a single year.

Group revenue for the year rose 19% to £257.1m with pre-tax profits during the period up 10% to £19.7m.

During the period the company also acquired Tulloch Homes, an Inverness-based house builder focused on building high-quality private housing in the Scottish Highlands.

In its private housing operations, Springfield said it completed 712 homes, compared to 559 in 2021, reflecting the acquisition of Tulloch Homes and organic growth.

It also completed 405 affordable homes – up from 363 in 2021 - as the group delivered against its highest ever contracted order book.

In contract housing, where the group provides development services to third party private organisations, 125 homes were completed (2021 - 51) 

This includes delivering the group’s first private rented sector (PRS) housing, with Sigma Capital plc.

Innes Smith, chief executive officer of Springfield Properties, said: “This year we achieved our highest ever annual profit and revenue with strong results across private, affordable and contract housing. 

“I am pleased at how we managed the material and supply chain pressures facing our industry so that, while not immune, we were able to mitigate much of the impact. 

“In keeping with our strategy, we significantly expanded our business with the acquisitions of Tulloch Homes and, post period, the Scottish housebuilding business of Mactaggart & Mickel – two high quality housebuilders with land in areas of strategic importance. We also achieved a milestone with the delivery of our first housing for the private rented sector. 

“We entered the 2023 financial year delivering against a strong order book in private housing, reflecting sustained demand for the type of homes that we provide and the expansion of our business. 

“We have excellent visibility over full year private revenue forecasts based on homes delivered, missived and reserved. 

“While the challenging economic backdrop will impact our affordable and PRS housing activity in the short term as we await decisions from the Scottish government, we are on track to deliver another year of revenue and profit growth overall. 

“Moreover, the fundamentals of the housing market in Scotland remain strong with high demand for homes across all tenures coupled with a national shortage in housing supply. As a result, the board continues to look to the future with confidence and to delivering sustainable value for all of our stakeholders.”