But firm expects reduced turnover for 2024
Springfield has reduced its bank debt quicker than targeted, according to a year-end trading update.
The Scottish housebuilder’s latest update, which covers the year ended 31 May, showed debt had been reduced to around £40m, ahead of the stated target of £55m.
However, the firm’s revenue is expected to be roughly £266m, well down on the £332m recorded the year prior.
Total completions are also expected to be down on the year, from 1,301 to 870.
Pre-tax profit is expected to be slightly ahead of market expectations, which the business attributed to profits on land sales of around £28m.
Innes Smith, chief executive of Springfield Properties, said: “A key priority for the year was reducing our debt, and we’re pleased that we have exceeded our target.
“This was achieved through securing profitable land sales, which, alongside continued cost control, has enabled us to deliver better-than-expected profit”.
According to the firm, market conditions in the year were “challenging with subdued homebuyer confidence and reduced affordable housing activity”.
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Smith nonetheless said he was “cautiously optimistic” about the year ahead.
“Many fundamentals that underpin homebuyer confidence are set to strengthen, including a new UK government, decreasing inflation and an anticipated interest rate reduction,” he said.
After returning to the affordable housing market during the year, the group reported revenue of around £46m from this segment. It expects to report revenue in affordable housing in line with market expectations in FY2025, representing growth of around 40%.
The group said it remained on track to deliver private housing revenue for FY2025 in line with market expectations.
Its final results will be published in September.
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