REG - Springfield Props. - Agreement with SSEN Transmission & Trading Update

Springfield PropertiesAnnouncement

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RNS Number : 8418L  Springfield Properties PLC  17 December 2025

The information contained within this announcement (this "Announcement") is
deemed by the company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014 as it forms part of the domestic law
of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018
(as amended) ("UK MAR").  Upon the publication of this Announcement via the
Regulatory Information Service, this inside information is now considered to
be in the public domain.

 

17 December 2025

 

Springfield Properties plc

("Springfield", the "Company" or the "Group")

 

Agreement with SSEN Transmission and Trading Update

Springfield signs agreement with energy infrastructure provider to deliver c.
300 homes

Trading for H1 2026 in line with management's expectations

 

Springfield Properties plc (AIM: SPR), a leading housebuilder in Scotland
focused on delivering private and affordable housing, announces that it has
signed an initial agreement with Scottish Hydro Electric Transmission plc (t/a
"SSEN Transmission") to commence the delivery of almost 300 homes in the North
of Scotland as part of SSEN Transmission's investment programme to upgrade the
national electricity transmission grid and to help deliver UK energy security.

 

The Group also provides an update on trading for the six months ended 30
November 2025 ("H1 2026") and is pleased to report that trading for H1 2026
was in line with management's expectations.

 

Agreement with SSEN Transmission

 

Springfield is pleased to announce that it has signed an initial agreement
with SSEN Transmission towards delivering 293 homes, at six sites across
Highland, Moray and Aberdeenshire, with the homes to be leased for an initial
four-year period to accommodate workers involved in SSEN Transmission's energy
upgrade projects.

 

Under the initial agreement, the Group will provide the enabling works to
prepare selected sites for the main construction and will receive payment from
SSEN Transmission to fund these site-opening costs. It is intended that the
parties will, in the near term, then enter a further agreement for the build
and lease of the housing. It is expected that homes will be delivered by
Springfield on a phased basis over the next three years and will be leased for
an initial four-year period.

 

At the conclusion of the lease period, the Group will have multiple attractive
options, including making the housing available for private housing sales or
sales to private rented sector providers as well as sales to affordable
housing providers to secure a lasting legacy for the communities.

 

The Group is continuing to discuss further agreements with SSEN Transmission
and other major infrastructure providers to deliver new housing on a similar
basis to support the upgrade of crucial energy infrastructure in the North of
Scotland.

 

Trading update

 

Trading for the six months ended 30 November 2025 was in line with
management's expectations. The Group expects to report revenue for H1 2026 of
c. £106.0m (H1 2025: £105.6m) and net bank debt at 30 November 2025 of c.
£40.0m (30 November 2024: £62.9m).

 

In private housing, there was an increase in average selling price during the
first half, which partly mitigated the expected reduction in completions.
While the market remained subdued, in line with the wider housebuilding
industry, the Group anticipates an upturn in consumer confidence following the
recent publication of the UK Budget, with the announced measures being less
severe than had been widely predicted. As a result, and along with normal
seasonality, the Group expects to deliver higher private housing revenue in
the second half of the year.

 

The Group performed well in affordable housing, with good growth in the number
of completions. The Group has continued to secure new contracts with gross
margins remaining strong. The Group now has almost all of forecast FY 2026
revenue for its affordable housing activity delivered or contracted and the
remainder under negotiation. Accordingly, the Board remains confident of
achieving revenue growth in affordable housing for the full year.

 

The Group continues to make selective land sales and interest in its large,
high-quality land bank remains strong.

 

The Group will provide further detail in its interim results announcement,
which is expected to be in February 2026.

 

Innes Smith, CEO of Springfield, said:

 

"We are delighted to have signed our first agreement to provide housing to
support the delivery of crucial infrastructure upgrades across the North of
Scotland. The build and multi-year lease of housing will allow us to receive
income over the course of the lease as well as having additional attractive
options at the conclusion of the lease period. We are continuing to discuss
further projects with SSEN Transmission and other infrastructure providers,
and we remain very excited about the substantial opportunities in the North of
Scotland.

 

"Turning to our trading, we are pleased to have performed in line with our
expectations for the first half, including a significant reduction in bank
debt compared with this time last year. In private housing, we are hopeful
that an increase in consumer confidence following the publication of the UK
Budget, along with expected interest rate cuts, will provide a boost to
homebuying in the 2026. We are continuing to perform well in affordable
housing, with almost all of our FY 2026 forecast revenue already delivered or
contracted. Accordingly, we remain on track to deliver results for the full
year in line with market expectations and look forward to reporting on our
progress as each of these initiatives progresses."

 

Commenting on the agreement, Rob McDonald, Managing Director of SSEN
Transmission, added: "This agreement with Springfield represents a milestone
in our housing legacy commitment. It's more than just bricks and mortar - it's
about creating long-lasting value for communities, providing much-needed
homes, and supporting the workforce delivering vital grid upgrades. Alongside
our other housing agreements, we are proud to be working in partnership with
Springfield to deliver homes that will benefit local people for decades to
come."

 

Photography to accompany this announcement can be downloaded from:
https://www.thespringfieldgroup.co.uk/press-photography
(https://www.thespringfieldgroup.co.uk/press-photography)

 

Enquiries

 

 Springfield Properties
 Sandy Adam, Chairman                   +44 134 355 2550

 Innes Smith, Chief Executive Officer

 Iain Logan, Chief Financial Officer

 Cavendish Capital Markets Limited
 Neil McDonald                          +44 131 220 9771

 Peter Lynch                            +44 131 220 9772

 Gracechurch Group
 Harry Chathli                          +44 20 4582 3500

 Claire Norbury

 

 

Analyst Research

 

Equity Development produces freely available research on Springfield
Properties plc, including financial forecasts. This is available to view and
download here:
https://www.thespringfieldgroup.co.uk/news/updates-and-analyst-reports
(https://www.thespringfieldgroup.co.uk/news/updates-and-analyst-reports)

 

 

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