£spr http://www.stockwatchuk.com/

Yesterday, Innes and Michelle, the CEO and FD, presented over pancakes, the 1H figures. All is well in the Elgin HQ and the dividend upped by 17% with recent reservations levels up 25%. 2H revenue is basically in the bag and a Boris bounce in Scottish property has happened! That said, Scottish property prices are up 2-4% in 2019 with Edinburgh & Glasgow property prices up 8%, 6-4% respectively, all according to Innes. Around 1000 homes will be built / sold by SPR this FY year. The past few years have been ones of volume growth for the PLC using the shares and cash to make acquisitions across Scotland. The near future is to be a period of building homes and value creating for shareholders. Currently Springfield is the go to company in Scotland for building families to sell to but any deal must be accretive and offer value. Innes Smith, the CEO joined SPR in 2005 as the FD and Michelle Motion is the current FD having joined the company in 2013. The Chairman finds the land and an ex farmer!

After a uninspiring start as a quoted PLC (currently the only quoted Scottish housebuilder, Scottish politics) this £140m market cap PLC has been strongly re rated post the UK general election. The current Scottish Government has brought forward the 2021 Budget plans with £300m for a help to buy schemes (eye to re-election?) and also set up a £150m Scottish Homes Fund which can give out £25k Government backed loans for new and old homes purchases. There is Scottish population growth but immigration is an issue, Innes explained. However, thanks to the distilleries not currently building and many major infrastructure projects ending in Scotland, Springfield does not have a labour issue and direct pay rose by only 2%. Other build related input prices are ‘softening’ after 4% annual rises. The 1H revenues were £80m, gross margins 20% (was 17.2%) and operating profits £7.3m, up 15%. EPS was 5.2p and the dividend set at 1.4p a share, being up 17%. 438 homes were completed in the 1H (1000 est for FY) and up 15%. SPR owns 15,862 plots of land with planning permissions on 30%. This number will see a big change at the YE, Innes stated especially as 3042 post period planning has been awarded at Durieshill, Stirling and further awards hinted…

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