REG - Springfield Props. - Final Results and Publication of Annual Report
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RNS Number : 4181Z Springfield Properties PLC 16 September 2025
16 September
2025
Springfield Properties plc
("Springfield", the "Company", the "Group" or the "Springfield Group")
Final Results and Publication of Annual Report
Springfield Properties (AIM: SPR), a leading housebuilder in Scotland focused
on delivering private and affordable housing, announces its final results for
the year ended 31 May 2025.
Financial Highlights
2025 2024 Change
£m £m
Revenue 280.6 266.5 5.3%
Private housing revenue 155.8 184.7 (15.6)%
Affordable housing revenue 49.4 47.0 5.1%
Contract housing revenue 11.0 5.0 120.0%
Land sales 60.5 28.1 115.3%
Other revenue 3.9 1.8 116.7%
Gross margin (%) 18.6% 16.3% 230bps
Administrative expenses* 27.6 26.5 4.2%
Operating profit 24.2 17.0 42.4%
Adj. operating profit* 25.2 17.9 40.8%
Profit before tax 19.0 9.7 95.9%
Adj. profit before tax* 20.1 10.6 89.6%
Basic EPS (p) 11.86p 6.36p 86.5%
Adj. basic EPS* (p) 12.66p 7.05p 79.6%
Net bank debt 20.9 39.9 (47.6)%
Total dividend per share (p) 2.0p 1.0p 100.0%
* Adjusted to exclude exceptional costs of £1.0m (2024: £0.9m)
Operational Highlights
· New strategy adopted to focus on the substantial opportunities in the
North of Scotland driven by incoming energy security infrastructure and
renewable development
· Discussions at an advanced stage with infrastructure providers for
Springfield to satisfy their housing requirements in the North of Scotland
while maximising the value of the Group's land bank
· Entered an agreement with Barratt Redrow plc ("Barratt") for the
profitable sale of 2,480 plots of undeveloped land, primarily in Central
Scotland, for £64.2m in cash
o Sale has accelerated the reduction of the Group's bank debt to £20.9m (31
May 2024: £39.9m) and supports the Group in capitalising on the opportunities
in the North of Scotland
· Significant progress in securing options over land in the North of
Scotland, which enabled a strong submission of c. 1,400 acres of land to the
Highland Council's call for new development sites
· Total completions of 799 (2024: 878), reflecting the impact of
previously-highlighted subdued market conditions
· Private housing reservation rates remained stable, but a lengthening
of the sales cycle reflected more cautious spending, prolonged decision-making
by homebuyers and slower processing by conveyancing lawyers
· Increase in affordable housing revenue year-on-year alongside
significant improvement in gross margin resulting from completion of
low-margin legacy contracts and securing new contracts on much stronger
commercial terms
· Large, high-quality land bank of 7,279 owned and contracted plots,
66% of which have planning permission
o Includes 4,030 owned and contracted plots in the North of Scotland in
close proximity to key work areas - in addition to the c. 1,400 acres of land
submitted for the Highland Council's call for sites
· Secured, post year end, new bank facilities with Barclays to provide
headroom to capitalise on opportunities in the North of Scotland: a three-year
revolving credit facility with a limit of £77.5m reducing in 12 months to
£47.5m alongside a 12-month overdraft facility of £2.5m
Innes Smith, Chief Executive Officer of Springfield Properties, said: "I am
pleased with what we achieved this year and how we have positioned ourselves
for greater success going forward. We accelerated the reduction of our bank
debt and delivered an increase in both profit and revenue, despite sales
continuing to be impacted by subdued market conditions. We have made the
decision to refocus our strategy to capitalise on the substantial
opportunities in the North of Scotland driven by incoming energy security
infrastructure and renewable development.
"We have already made excellent progress in implementing this new strategy and
are now in advanced discussions with infrastructure providers whereby we
expect to enter an agreement in the near term for the build and multi-year
lease of housing. This would allow us to receive regular income over the
course of the lease as well as having further options for monetisation at its
conclusion. This reflects our ability to navigate the market and our agility
to deliver innovative solutions to meet housing need while maximising the
value of our land bank in this area of high demand. We are very excited about
the prospects in the North of Scotland, in particular, and we continue to look
to the future with great confidence."
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
Adam Rae +44 131 220 9778
Gracechurch Group
Harry Chathli +44 20 4582 3500
Claire Norbury
Henry Gamble
Analyst Research
Equity Development and Progressive Equity produce 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)
Results Investor Webinar
Management will be presenting to shareholders, via a webinar hosted by Equity
Development, at 9.00am BST on Wednesday 17 September 2025. Investors can
register their attendance for the webinar
here: https://www.equitydevelopment.co.uk/news-and-events/springfield-properties-full-year-results-investor-presentation-17-september
(https://www.equitydevelopment.co.uk/news-and-events/springfield-properties-full-year-results-investor-presentation-17-september)
Operational Review
Total completions for the year ended 31 May 2025 were 799 (2024: 878).
Springfield achieved an increase in revenue to £280.6m (2024: £266.5m) and
in profit before tax and exceptional items to £20.1m (2024: £10.6m). The
growth in revenue was driven primarily by land sales as the Group continued to
realise the value of its large, high-quality land bank, most notably through
an agreement to sell to Barratt undeveloped land, primarily located
across Central Scotland, across six sites. This profitable land sale
significantly strengthens the Group's ability to capitalise on the substantial
opportunities in the North of Scotland, which are being driven by incoming
energy security infrastructure and renewable development. The Group made
excellent progress during the year in implementing its new strategy in the
North of Scotland and is now in advanced discussions with infrastructure
providers about providing a solution to the housing need that will also allow
the Group to maximise the value of its land holdings in this area of high
demand.
Strategic focus on the North of Scotland
During the year, Springfield made the strategic decision to focus its efforts
going forward on the opportunities developing in the North of Scotland. The
pace and scale of job creation across the region to deliver renewable energy
infrastructure, aimed at achieving energy security, is unprecedented. This
infrastructure development will require new housing for thousands of
additional workers that are needed to plan, construct and operate the projects
as well as the long-term growth in population as a result of the economic
stimulus to the region. Research by Highlands & Islands Enterprise
highlights the scale of the ambition with potential strategic investment
totalling £100bn forecast over the next 25 years. To cater for this
unprecedented growth, the Highland Council is targeting the construction of
24,000 homes - effectively doubling housing output over the next ten years -
and is expected to be the first Local Authority to utilise new powers under
Masterplan Consent Areas to streamline delivery. The increase in housing
demand is also expected to support sustainable house price growth in the
region.
Springfield has substantial landholdings across the region and within
commuting distance to the new employment locations. The Group has a
significant and established position in the local market, with experience of
delivering housing across tenures and with a historic supply chain in place.
The Group also has a successful track record of operating with agility to
maximise opportunities. Accordingly, Springfield believes that it is
exceptionally well-placed to benefit from this regional transformation and
associated demand for housing.
The Group is continuing to build out and sell its existing live private and
affordable housing sites in Central Scotland, which is expected to complete in
c. 2-3 years, and the Group will maintain a long-term presence in the region
through the Group's village developments in Dundee and Perth. However,
Springfield's new projects and land purchasing are now focused on the North of
Scotland.
To that end, and as described further below, the Group made significant
progress during the year in securing options over land in the region, which
enabled the submission of c. 1,400 acres of land for consideration in response
to the Highland Council's call for new sites to be allocated for housing
development in their forthcoming Local Plan. Each of Springfield's submissions
were for sites that are close to existing infrastructure and deliverable
within a timeframe that supports the Council's housing goals. As a result, the
Group expects to achieve a further increase in the number of its sites
allocated for residential development within the forthcoming Local Plan, which
is expected to be finalised by the end of calendar year 2026.
During the year, the Group commenced discussions with infrastructure
providers, the Scottish Government and the Councils in the North of Scotland
to explore how to meet the demand for the new housing required. These
discussions are now at an advanced stage with certain infrastructure
providers. The infrastructure providers are seeking high-quality accommodation
that addresses their workers' needs and promotes a healthier lifestyle while
the workers are undertaking lengthy contracts. The infrastructure providers
are also committed to creating a permanent legacy for the local communities by
providing additional housing options for when the infrastructure construction
work concludes. The Group is currently discussing Springfield building homes
across a number of sites that would be leased to the infrastructure providers
for a fixed multi-year period. This would generate revenue for Springfield
over the course of the lease period, which is expected to be approximately
four years. At the conclusion of the lease, Springfield would expect to then
have multiple attractive options, including private housing sales and sales to
affordable housing partners and to private rented sector providers. This
arrangement would enable the Group to build up a stock of homes for future
sale to meet growing demand - such as from job creation due to the Inverness
& Cromarty Firth Green Freeport - as well as benefit from the forecast
increase in house and rental prices. The Group believes that this arrangement
would maximise the value that Springfield can generate from the delivery of
housing over the duration of the lease and thereafter, while satisfying the
requirements of the infrastructure providers and serving the long-term needs
of the local communities by providing additional high-quality housing.
Agreement with Barratt
To strengthen Springfield's ability to capitalise on the significant
opportunities in the North of Scotland, the Group entered an agreement to sell
to Barratt undeveloped land, primarily located across Central Scotland,
equating to 2,480 plots with planning across six sites for a total of £64.2m,
with proceeds to be received over four years. The sale of five sites was
completed during the year and the sale of the sixth site has been completed
post year end. The Group has also had non-binding discussions regarding the
possible sale of additional future land holdings on a number of other sites.
This profitable land sale has enabled a significant reduction in Springfield's
bank debt and made an important contribution to revenue. It has also already
supported the Group's growth plans in the North by underpinning Springfield's
capacity for land buying.
Land Bank
A key element of Springfield's strategy during the year, and continuing from
the previous year, was realising the value of the Group's large, high-quality
land bank to reduce its bank debt. During the year, the Group completed
profitable sales of £60.5m, which was predominantly of land in Central
Scotland through the Group's agreement with Barratt.
At the same time, the Group has strengthened its land bank in the North of
Scotland by securing options over land. This enabled the Group's strong
submission to the Highland Council's call for sites and builds up a valuable
asset for the Group.
At 31 May 2025, Springfield had a total of 3,912 owned plots (31 May 2024:
5,593), of which 72% had planning permission (31 May 2024: 88%), and 3,367
contracted plots (31 May 2024: 6,866), of which 58% had planning permission
(31 May 2024: 57%). These changes reflect the Group's agreement with Barratt
and its strategic refocus on the North of Scotland. At 31 May 2025, the
Group's land bank in the North of Scotland consisted of 4,030 owned and
contracted plots across 50 sites, which the Group has increased since year
end. In addition, Springfield has a significant amount of land under option in
the North of Scotland, which enabled its strong submission of c. 1,400 acres
of land to the Highland Council's call for development sites.
The total owned and contracted land bank equated to nine years of activity and
had a gross development value at 31 May 2025 of £1.8bn (31 May 2024:
£3.1bn).
At year end, Springfield was active on 40 developments (31 May 2024: 42) and
during the year 12 developments were completed and 10 new developments became
active.
Private Housing
The Group was pleased that reservation rates in private housing remained
stable during the year, in line with the second half of 2024 and with limited
use of incentives. However, there was a lengthening of the sales cycle
reflecting more cautious spending, prolonged decision-making by buyers and
slower processing by conveyancing lawyers, which impacted completions. As a
result, and having started the year with a lower order book than at the same
point in the previous year, the number of private home completions was 497 for
2025 compared with 584 in 2024. This also led to increased time and cost to
complete sites, which impacted gross margin in private housing.
The average selling price ("ASP") for private housing during the year was
£313k (2024: £316k), reflecting selling prices remaining resilient across
the Group's brands.
As at 31 May 2025, Springfield was active on 25 private housing developments
(31 May 2024: 29), with five active developments added during the year and
nine developments completed. In total, as at 31 May 2025, the owned private
housing land bank consisted of 2,598 plots (31 May 2024: 3,837 plots), of
which 68% had planning permission (31 May 2024: 87%). As described above, this
reflects the Group's agreement with Barratt and strategic refocus on the North
of Scotland.
Affordable Housing
In affordable housing, Springfield is pleased to have delivered a year-on-year
increase in revenue in line with market expectations alongside a significant
increase in gross margin, which returned to double digits. The increase in
gross margin was primarily due to the completion of low-margin legacy
contracts at the end of 2024 and the contracts delivered in 2025 having much
stronger commercial terms. As a result, there was an uplift in ASP to £207k
(2024: £174k), in line with the increased pricing across the sector with the
Scottish Government making higher levels of grant subsidy available to
affordable housing providers. This also offset the slightly lower completions
during the year of 237 (2024: 270). This reduction primarily reflects the
delay to build programmes in Central Scotland as competition to secure grants
for sites increased because of the knock-on impact from the reduction in grant
available the year prior. This did not occur in the North due to Springfield's
strong position in the region.
The number of active affordable housing developments was 14 at 31 May 2025 (31
May 2024: 10), with five active developments added during the year and one
development completed. As at 31 May 2025, the total owned affordable housing
land bank consisted of 1,314 plots (31 May 2024: 1,756), of which 82% had
planning permission (31 May 2024: 89%).
Contract Housing
In contract housing, Springfield provides development services to third party
private organisations and receives revenue based on costs incurred plus fixed
mark up. To date, this has largely consisted of services provided to Bertha
Park. At 31 May 2025, the contract housing land bank with planning consent
consisted of 500 plots (31 May 2024: 579). The 65 homes completed during the
year (2024: 24) comprised 42 private homes and 23 affordable homes at Bertha
Park. The increase in completions was due to the release of a new phase of
private housing at Bertha Park.
Financial Review
Revenue 2025 2024 Change
£'000 £'000
Private housing 155,776 184,734 (15.7)%
Affordable housing 49,380 46,975 5.1%
Contract housing 10,976 4,995 119.7%
Land sales 60,507 28,055 115.7%
Other 3,918 1,768 121.9%
TOTAL 280,557 266,527 5.3%
For the year ended 31 May 2025, revenue increased to £280.6m (2024:
£266.5m). Private housing remained the largest contributor to Group revenue,
accounting for 55.5% (2024: 69.3%). The lower proportion compared with the
previous year is due to the reduction in private housing sales combined with
the significant increase in land sales, which accounted for 21.6% of total
revenue (2024: 10.5%). Affordable housing accounted for 17.6% of total revenue
(2024: 17.6%), contract housing accounted for 3.9% (2024: 1.9%) and other
revenue for 1.4% (2024: 0.7%).
Gross margin increased to 18.6% (2024: 16.3%) mainly as a result of the
profitable land sales and the significant improvement in affordable housing
gross margin primarily due to the Group's low-margin legacy contracts being
completed at the end of 2024 and the contracts delivered in 2025 having much
stronger commercial terms. This offset a reduction in gross margin in private
housing, which was impacted by the lengthening of the sales cycle and time to
complete sites. As a result, gross profit for the year increased to £52.1m
(2024: £43.4m).
Administrative expenses, excluding exceptional items, were £27.6m and
accounted for 9.8% of revenue (2024: £26.5m and 9.9%). This reflects a
continued focus on carefully managing costs across the Group.
Exceptional items were £1.0m (2024: £0.9m), which mainly relates to
restructuring costs and a provision for legal fees.
Operating profit increased to £24.2m (2024: £17.0m) driven by the profitable
land sales. Excluding exceptional items, operating profit was £25.2m (2024:
£17.9m).
Net finance costs were £5.2m (2024: £7.3m), which represents lower bank
interest payments due to the reduction in interest rates and lower average
bank debt over the period.
Statutory profit before tax increased to £19.0m (2024: £9.7m) and adjusted
profit before tax and exceptional items to £20.1m (2024: £10.6m).
Basic earnings per share (excluding exceptional items) increased to 12.66
pence (2024: 7.05 pence) and statutory basic earnings per share to 11.86 pence
(2024: 6.36 pence). Return on capital employed was 13.4% (2024: 8.0%), which
primarily reflects the increased profit as well as lower average capital
employed.
The Group continued its focus on reducing its net bank debt, which was reduced
substantially to £20.9m as at 31 May 2025 (31 May 2024: £39.9m), which also
included the acceleration of the receipt of a payment from Barratt that was
originally scheduled for March 2026. With the reduction in debt and the
increase in profit, the Group significantly improved its bank debt to EBITDA
ratio to 0.8 (2024: 2.0).
Springfield has secured new bank facilities with Barclays: a revolving credit
facility ("RCF") for 3 years until August 2028 with a facility limit of
£77.5m reducing in 12 months to £47.5m alongside an overdraft facility of
£2.5m for 12 months until August 2026. The RCF carries an interest rate of
2.1% per annum above Bank of England SONIA. The reducing facility levels align
with the strategy of reducing bank debt whilst still providing the Group with
headroom to capitalise on opportunities that arise.
Customer Satisfaction
For the year to 31 May 2025, the Group is pleased to report a customer
satisfaction score of 96% (2024: 96%). Springfield's continued success
reflects the strength of its customer offering, which includes a high
specification as standard, extensive choice and consistently excellent service
throughout the home buying journey.
In addition, the Group maintained its ISO 9001 Quality Management
certification and is pleased to have achieved a perfect score of 100% in three
independent on-site audits conducted under the New Homes Quality Code, further
reinforcing the Group's dedication to quality and customer experience.
Environment and People - ESG
The Group's new strategy for housing delivery in the North of Scotland will
contribute to the decarbonisation of the nation and ensuring energy security.
More new homes are required to accommodate the growing renewables workforce
and ensure people can move into the Highlands, Moray and Aberdeenshire to
deliver this change.
The Group's homes are highly energy efficient and constructed within
communities designed for residents to live sustainably. The Group employs
advanced methods of construction to manufacture timber kits for its homes
off-site at two strategically located regional facilities. This approach
enhances efficiency, consistency and quality across its developments.
Springfield continues to lead in sustainable housing solutions, particularly
through the integration of air source heat pump technology. Notably, during
the year, 50% of the homes delivered were built without a mains gas connection
- demonstrating the Group's commitment to low-carbon living (2024: 45.5%).
The Group maintained its industry-leading commitment to training and
development throughout the year, investing in the next generation of talent
across its operations. For every 14 homes built, one apprentice was trained -
resulting in apprentices comprising 20% of the Group's site-based workforce.
The Group's dedication to continuous learning also extended to its office
teams, with 6% of staff undertaking formal qualifications during the year.
Recruitment and skills development are high on the agenda currently as the
Group prepares for the anticipated growth in the North of Scotland and 25 new
apprentices have recently been recruited.
The Group pro-actively monitors all of its operations through formal
site-based inspections and audits, looking at a number of key areas to ensure
the safety of employees, contractors and members of the public. The Group's
continued priority is to reduce accidents and to take the lessons learned to
focus on prevention. During the year, the Group also added ISO 45001 -
Occupational Health & Safety Management to its list of accreditations
after a rigorous external audit.
Over the past year, a series of strategic initiatives have been advanced that
are designed to deliver meaningful value for people and the environment. The
Group's progress is detailed in its annual ESG Strategy Update, which has been
published on the Group's website, reflecting its ongoing commitment to
transparency and responsible growth.
Markets
The housing market has remained subdued, primarily due to the lengthening of
the sales cycle, with the number of new-build homes delivered across the UK
down around a quarter compared with pre-pandemic levels.
In Scotland, a housing emergency was declared in May 2024, and a number of
actions are being taken by the Scottish Government to help increase housing
supply to tackle the emergency. A dedicated Cabinet Secretary for Housing was
appointed in June 2025 to put housing higher up the political agenda. In her
first Parliamentary statement this month, the Cabinet Secretary confirmed the
Scottish Government's intention to move forward with a legislative exemption
for any rent caps introduced in local markets for Build to Rent homes. This is
expected to open up investment in PRS at scale in Scotland. With the PRS
market currently underserved for good quality, well-managed options, the Group
envisages substantial growth in this tenure and intends to play a key role in
the expansion of PRS to accommodate the incoming working population in the
North. As noted above, Springfield is particularly confident about the market
dynamics in the North of Scotland.
The Scottish Government remains committed to its target to deliver 110,000
affordable homes by 2032. The delivery of affordable homes is an important
part of Springfield's business and one that the Group is particularly proud of
due to the significant impact on people's lives. In December 2024, an
affordable housing supply budget of £768m was announced, an increase of 38%
on the previous year. In addition, as part of its Action Plan to tackle the
Housing Emergency, a new commitment has been made by the Scottish Government
to deliver up to £4.9bn of investment over the next four years. The
introduction of multi-year funding for affordable housing recognises housing
as key infrastructure for Scotland, giving welcomed certainty and confidence
to the affordable housing sector to plan and invest in new developments
following a drop in construction starts. Recognising the correlation between
the number of private homes delivered and the number of affordable homes
provided, the Cabinet Secretary has announced an all-tenure delivery ambition,
to work with the housebuilding sector to increase delivery across all sectors
by at least 10% each year over the next three years.
The mortgage market across the UK remains supportive with a high number of new
build products widely available. To bolster house buying, particularly amongst
first time buyers, a number of consultations have been launched exploring how
a relaxation in some lending criteria could help. This includes an increase in
income to loan multiples and use of rental track records to demonstrate an
ability to sustain monthly household bills. Giving households motivation to
move and confidence that now is a good time will help the private market and
Springfield is well-positioned to deliver against the demand. With the North
of Scotland typically a more affordable place to live than the main cities and
suburbs of Scotland and elsewhere in the UK, there is significant scope within
current house price to income ratios for growth as the market strengthens.
Dividend
The Board is pleased to recommend a dividend for the year of 2p per ordinary
share (2024: 1p), subject to shareholder approval at the next annual general
meeting, with an ex-dividend date of 6 November 2025, a record date of 7
November 2025 and a payment date of 11 December 2025.
Outlook
Looking ahead, Springfield is very excited about the significant prospects in
the North of Scotland. As noted, the Group is in advanced negotiations with
infrastructure providers and expect to enter an agreement in the near term for
the build and multi-year lease of housing. This would allow the Group to
receive regular income over the course of the lease, which is expected to be
four years, as well as having further options for monetisation at the
conclusion of that term. This represents an excellent opportunity for
Springfield that will allow the Group to maximise the value of its land
holdings in this area of high demand.
This approach also reflects the Group's ability to navigate the market and its
agility to deliver innovative solutions to meet housing demand while
generating value from its high-quality land bank.
On an underlying basis, to exclude the exceptional contribution to 2025
revenue from the land sales to Barratt, the Group expects to deliver revenue
growth for 2026. This reflects a year-on-year increase in revenue in both
private and affordable housing, in line with the Group's expectations. While
the private housing market across the UK continues to be challenging as
homebuyers remain cautious, the Group expects growth to be driven by an
increase in ASP and with completions being broadly level. In affordable
housing, with over 80% of forecast 2026 revenue already contracted and the
remainder under negotiation, Springfield is in a stronger position than it has
been in recent years.
Accordingly, the Group continues to look to the future with great
confidence.
Publication of Annual Report
The Company's annual report and accounts for the year ended 31 May 2025 are
being sent to shareholders today and have been made available on the
'Financial Results and Reports' page of the Company's website:
www.thespringfieldgroup.co.uk (http://www.thespringfieldgroup.co.uk)
COnsolidated PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 May 2025
2025 2024
Note £000 £000
Revenue 3 280,557 266,527
Cost of sales (228,435) (223,155)
Gross profit 52,122 43,372
Administrative expenses before exceptional items (27,609) (26,485)
Exceptional items 5 (1,032) (898)
Total administrative expenses (28,641) (27,383)
Other operating income 711 1,021
Operating profit 24,192 17,010
Finance income 361 159
Finance costs (5,534) (7,501)
Profit before taxation 19,019 9,668
Taxation 4 (4,923) (2,120)
Profit for the year and total comprehensive income 14,096 7,548
Profit for the year and total comprehensive income is attributable to:
Owners of the parent company 14,096 7,548
14,096 7,548
Earnings per share
Basic 7 11.86p 6.36p
Diluted 7 11.28p 6.12p
The Group has no items of other comprehensive income.
COnsolidated BALANCE SHEET
FOR THE YEAR ENDED 31 May 2025
2025 2024
Non-current assets Note £000 £000
Property, plant and equipment 6,783 7,184
Intangible assets 5,435 5,698
Deferred taxation 1,852 1,787
Trade and other receivables 11,191 5,000
25,261 19,669
Current assets
Inventories 223,892 244,297
Trade and other receivables 41,096 26,352
Cash and cash equivalents 9,388 14,935
274,376 285,584
Total assets 299,637 305,253
Current liabilities
Trade and other payables 55,735 49,632
Short-term bank borrowings 8 30,282 54,839
Deferred consideration 9 7,469 7,339
Short-term obligations under lease liabilities 1,351 1,567
Provisions 11 1,871 2,018
Corporation tax 2,752 1,342
99,460 116,737
Non-current liabilities
Trade and other payables 1,550 -
Long-term obligations under lease liabilities 4,160 3,971
Deferred taxation 2,866 2,958
Deferred consideration 9 14,491 17,123
Contingent consideration 10 2,000 2,000
Provisions 11 3,855 4,257
28,922 30,309
Total liabilities 128,382 147,046
171,255 158,207
Net assets
Equity
Share capital 12 149 148
Share premium 12 78,744 78,744
Retained earnings 92,362 79,315
Equity attributable to owners of the parent company 171,255 158,207
consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 31 MAY 2025
Share capital Share premium Retained earnings Total
Note £000 £000 £000 £000
1 June 2023 148 78,744 71,741 150,633
Total comprehensive income for the year - - 7,548 7,548
Share-based payments 12 - - 26 26
31 May 2024 148 78,744 79,315 158,207
Issue of shares 12 1 - - 1
Total comprehensive income for the year - - 14,096 14,096
Share-based payments 12 - - 139 139
Dividend 6 - - (1,188) (1,188)
31 May 2025 149 78,744 92,362 171,255
The share capital account records the nominal value of shares issued.
The share premium account records the amount above the nominal value received
for shares issued, less share issue costs.
Retained earnings represents accumulated profits less losses, and
distributions. Retained earnings also includes share based payments.
Consolidated Statement of Cash Flows
year to 31 May 2025
2025 2024
Cash flows generated from operations Note £000 £000
Profit for the year - Adjusted for: 14,096 7,548
Exceptional items 5 1,032 898
Taxation charged 4 4,923 2,120
Finance costs 5,534 7,501
Finance income (361) (159)
Adjusted operating profit before working capital movement 25,224 17,908
Exceptional items 5 (1,032) (898)
Gain on disposal of tangible fixed assets (140) (215)
Gain on disposal of investment - -
Share-based payments 12 139 26
Non-cash movement 899 -
Amortisation of intangible fixed assets 263 259
Depreciation and impairment of tangible fixed assets 2,135 2,332
Operating cash flows before movements in working capital 27,488 19,412
19,511 32,086
Decrease in inventory
Increase in accounts and other receivables (20,348) (2,497)
Increase/(decrease) in accounts and other payables 7,089 (4,496)
Net cash from operations 33,740 44,505
Taxation paid (3,675) (1,818)
Net cash inflow from operating activities 30,065 42,687
Investing activities
Purchase of property, plant and equipment (156) (177)
Proceeds on disposal of property, plant and equipment 244 270
Interest received 140 155
Purchase of intangible assets - (4)
Net cash generated from investing activities 228 244
Financing activities
Deferred consideration paid on acquisition of subsidiary 14 (2,857) (12,141)
Repayment of bank loans 14 (24,908) (15,834)
Payment of lease liabilities 14 (2,142) (2,234)
Dividends paid 6 (1,188) -
Interest paid (5,096) (6,696)
Net cash outflow from financing activities (36,191) (36,905)
Net (decrease)/increase in cash and cash equivalents (5,898) 6,026
Cash and cash equivalents at beginning of year 14,935 8,909
Cash and cash equivalents at end of year 9,037 14,935
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR TO 31 MAY 2025
1. Organisation and trading activities
Springfield Properties Plc is incorporated and domiciled in Scotland as a
public company limited by shares and operates from its registered office in
Alexander Fleming House, 8 Southfield Drive, Elgin, Morayshire, IV30 6GR.
The principal activities are construction and sale of residential properties
for private individuals, affordable homes in partnership with third party
councils and housing associations and contracting for private rented sector
alongside land development and promotion.
2. Summary of significant accounting policies
The principal accounting policies adopted and applied in the preparation of
the financial statements are set out below. These have been consistently
applied to all the years presented unless otherwise stated.
2.1 Basis of accounting
The financial statements of Springfield Properties Plc have been prepared in
accordance with UK adopted international accounting standards. The Group has
adopted all the standards and amendments to existing standards that are
mandatory for accounting periods beginning on 1 June 2024. The financial
statements have been prepared under the historical cost convention except for
contingent consideration.
The following standards have been issued but have not been applied by the
Group in these financial statements. These amendments to standards and
interpretations had no significant impact on the financial statements:
· Amendments to IAS 1 'Classification of liabilities as current or
non-current'
· Amendments to IAS 1 'Classification of liabilities as current or
non-current- Deferral of Effective Date'
· Amendments to IAS 1 'Non-current Liabilities with Covenants'
· Amendments to IFRS 16 'Lease liability in a sale and leaseback'
· Amendments to IAS 7 and IFRA 7 'Supplier Finance Arrangements'
The following new standards and amendments to standards have been issued but
are not effective for the financial year beginning 1 June 2024 and have not
been early adopted:
· Amendments to IAS 21 'Lack of Exchangeability'
· Amendments to IFRS 7 and IFRS 9 'Classification and Measurement
of Financial Instruments'
· IFRS 18 'Presentation and Disclosure in Financial Statements'
· IFRS 19 'Subsidiaries without Public Accountability: Disclosures'
The new standards and amendments to the standards noted above are expected to
have no significant impact on the financial statements.
Prior period reclassification
As part of the purchase of Tulloch Homes Holdings Limited in December 2021
there was deferred consideration payable. The final payment of £6.5m was made
in the financial year ended May 2024. The deferred consideration has been
treated as a loan from the seller which meets the definition of IAS 7 para
17(d). This supports the classification of the payment as a financing activity
within the consolidated statement of cashflows. The company statement of
cashflows, however, incorrectly classified this payment as an investing
activity. The May 2024 company statement of cashflows has been restated to
reclassify the £6.5m payment from investing activities to financing
activities. There was no impact on net cash flows for the period.
The above change was prompted by an enquiry from the Corporate Reporting
Review team of the Financial Reporting Council (FRC) as part of its regular
review and assessment of the quality of corporate reporting in the UK. The
Group agreed to make the change above within the 2025 financial statements.
The FRC's review was limited to the May 2024 annual report and accounts and
the FRC does not benefit from a detailed knowledge or understanding of the
underlying transactions of the Group and it provides no assurance that the
annual report and accounts are correct in all material aspects.
2.2 Basis of consolidation
The consolidated financial statements incorporate those of Springfield
Properties Plc and its subsidiaries. Where the Company has control over an
investee, it is classified as a subsidiary. The Company controls an investee
if all three of the following elements are present: power over the investee,
exposure to variable returns from the investee, and the ability of the
investor to use its power to affect those variable returns. Control is
reassessed whenever facts and circumstances indicate that there may be a
change in any of these elements of control. Contingent consideration is
measured at its fair value at the date of acquisition. If the contingent
consideration meets the definition of equity, it is not remeasured, and
settlement is accounted for within equity. Other contingent consideration is
remeasured at fair value at each reporting date with subsequent changes in the
fair value of the contingent consideration recognised in the consolidated
profit and loss account.
All financial statements are made up to 31 May 2025. All intra-Group
transactions, balances and unrealised gains on transactions between Group
companies are eliminated on consolidation.
2.3. Functional and presentation currencies
The financial statements are presented in Pound Sterling (£), rounded to the
nearest £000, which is also the currency of the primary economic environment
in which the Group operates (its functional currency).
2.4. Going concern
In determining the appropriate basis of preparation of the Financial
Statements, the Directors are required to consider whether the Group can
continue to meet its liabilities and other obligations for the foreseeable
future.
The Group's business activities, together with factors that the Directors
consider are likely to affect its development, financial performance and
financial position, are set out in the Strategic Report on pages 4 to 35 of
the Group's annual report for the year ended 31 May 2025 (the "2025 Annual
Report").
The material financial and operational risks and uncertainties that may affect
the Group's performance and their mitigation are outlined on pages 15 to 17 of
the 2025 Annual Report, and financial risks including liquidity, market,
interest and capital risks are outlined in Note 28 to the Financial Statements
in the 2025 Annual Report.
Net bank debt at 31 May 2025 was significantly reduced to £20.9m (31 May
2024: £39.9m), reflecting the Group's sustained focus on reducing the debt
position and was ahead of the target of £38m set at this time last year.
The revolving credit facility of £87.5m that was due to expire in January
2026 and overdraft of £2.5m in place until September 2025 have been replaced
by a new revolving credit facility of £77.5m with an expiry date of August
2028 and an overdraft facility of £2.5m in place until August 2026 to provide
working capital facilities. The revolving credit facility level of £77.5m
will reduce to £47.5m in August 2026 in line with the Group strategy of
reducing debt.
In order to support the going concern period to 30 September 2026, the
Board-approved budget to May 2026, with a further year added to May 2027,
forms the basis of the detail and assessment to confirm the appropriateness of
the going concern basis being adopted for the preparation of the 31 May 2025
statutory accounts.
In addition to the Board budget, two sensitivity scenarios have been prepared
reducing private home sales by c. 5% and c. 10% in the year to May 2026 from
the original Board-approved budget. Under the 10% reduction scenario, the peak
borrowing utilises c. 85% of the banking facilities. Under this scenario there
are a number of mitigating actions that are within the control of the Group
and could be pursued if required.
Under all three scenarios the Group is able to operate within its bank
facilities and covenants and at May 2026, the bank facility utilisation based
on the Board-approved budget is forecast to be around 10%.
The Group continues to retain the discipline around controlling build spend on
sites and continues to adopt a cautious approach to new site openings. The
profitable land sales in the year again demonstrate the ability to generate
cash quickly - there remains strong interest in the Group's land bank should
the Group wish to make further sales.
Accordingly, the Directors believe that it remains appropriate to prepare the
financial statements on a going concern basis. The Directors are confident
that the Group has adequate resources to continue in operational existence for
the foreseeable future and are satisfied that the Group and Company will
generate sufficient cash to meet their liabilities as and when they fall due
for a period of 12 months from the signing of the annual report and financial
statements for the year ended 31 May 2025.
2.5. Revenue and profit recognition
Sale of private housing
Revenue on private home sales is recognised at a point in time and the
performance obligation is the transfer of the completed property to the
customer on legal completion and receipt of cash. Revenue is measured at the
fair value of the consideration received net of VAT and trade discounts.
The Group's site valuation process determines the forecast profit margin for
each site. The valuation process acts as a method of allocating land costs and
construction costs of a development to each individual plot based on the
overall development margin and drives the recognition of costs in the profit
and loss account as each plot is sold. Any changes in the forecast profit
margin of a site from changes in sales prices or costs to complete is
recognised across all homes sold in both the current period and future
periods.
Revenue on contracts recognised over time - affordable housing
Revenue from affordable housing contracts is recognised over time as
development progresses as the construction activity enhances an asset
controlled by the customer.
Where the outcome of a contract can be estimated reliably, the amount of
revenue recognised depends on the stage of completion. This is based on the
development costs incurred as a proportion of the total expected development
costs (the input method).
Contractual cashflows are determined by independent surveys of work performed
to date. These do not always align with the revenue recognised on the
underlying performance obligation and any cashflows received that are in
excess of the revenue recognised are included as contract liabilities. Where
the cashflows received are less than revenue recognised the difference is
included within contract assets.
Revenues derived from variations on contracts are recognised only when they
can be reliably measured. Where the outcome of a construction contract cannot
be estimated reliably, contract costs are recognised as expenses in the period
in which they are incurred and contract revenue is recognised to the extent of
contract costs incurred where it is probable that they will be recoverable.
When it is probable that total contract costs will exceed contract turnover,
the expected loss is recognised as an expense immediately.
Contract housing revenue
Revenue from contract housing is recognised monthly based on an agreed mark up
of cost incurred.
Costs are measured and valued monthly by quantity surveyors before invoices
are issued to the customer.
Land sales
Revenue from land sales is recognised on legal completion based on fair value
at transfer. Where revenue receipts are deferred into a future period, a
discounting adjustment is made to the revenue recognised, with the discount
unwinding over the deferred payment period.
Plant hire revenue
Plant hire revenue represents amounts receivable for the short-term hire of
plant and equipment. Revenue is recognised when the hire period commences and
the customer benefits from the use of the plant and equipment and is
recognised evenly throughout the hire period.
2.6. Net finance costs
Finance costs comprise interest payable on bank loans and the unwinding of the
discount from nominal to present day value of provisions, discounted deferred
consideration on acquisitions and lease liabilities. Finance costs are
capitalised when they are directly attributable to the acquisition,
contribution or production of an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale. Finance income
comprises the unwinding of the discount from nominal to present day value of
shared equity loan receivables and deferred land sales income. Interest income
and interest payable is recognised in the profit and loss account on an
accruals basis.
2.7. Taxation
The tax expense represents the sum of the tax currently payable and deferred
tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable
profit differs from net profit as reported in the profit and loss account
because it excludes items of income or expense that are taxable or deductible
in other years and it further excludes items that are never taxable or
deductible. The Group's liability for current tax is calculated using tax
rates that have been enacted or substantively enacted by the reporting date.
Deferred tax
Deferred tax assets and liabilities are recognised on temporary differences
arising between the tax bases of assets and liabilities and their carrying
amounts in the financial statements. The following temporary differences are
not provided for: goodwill, the initial recognition of assets and liabilities
that affects neither the tax profit nor the accounting profit, and differences
relating to investments in subsidiaries to the extent that they will probably
not reverse in the foreseeable future. Deferred tax is determined using tax
rates and laws that have been enacted or substantively enacted by the balance
sheet date and are expected to apply when the related deferred tax asset is
realised, or the deferred tax liability is settled.
A deferred tax asset is recognised for unused tax losses and unused tax
credits only if it is probable that future taxable amounts will arise
against which those temporary differences and losses may be utilised.
2.8. Exceptional items
Exceptional items are those material items which, by virtue of their size or
incidence, are presented separately in the profit and loss account to enable a
full understanding of the Group's financial performance.
Transactions that may give rise to exceptional items include transactions
relating to acquisitions and costs relating to changes in share capital
structure as well as redundancy and restructuring costs.
2.9. Property, plant and equipment
Tangible fixed assets are initially measured at cost and subsequently measured
at cost net of depreciation and any impairment losses. Depreciation is
recognised so as to write off the cost of assets less their residual values
over their useful lives on the following bases:
Buildings
- 2% and 5% straight line
Plant and machinery - 2-10
years straight line
Fixtures, fittings & equipment - 2-5 years straight
line
Motor
vehicles
- 4-5 years straight line
Right-of-use leased assets - over the lease
term, straight line with no residual value
Land is not depreciated
The gain or loss arising on the disposal of an asset is determined as the
difference between the sale proceeds and the carrying value of the asset and
is credited or charged to the profit and loss account.
2.10. Intangible fixed assets
Intangible assets comprise market-related assets (e.g. trademarks, website
developments and brands) and goodwill on acquisition.
Market-related assets
Trademark assets in relation to Springfield Properties Plc are expected to
have an indefinite useful life; however, impairment reviews are performed
annually. Any impairment losses or reversals of impairment losses are
recognised immediately in the profit and loss account.
The brand asset in relation to Tulloch Homes has a 15-year useful life and
amortisation is charged on a straight-line basis.
Goodwill on acquisition
Goodwill on acquisitions of subsidiaries or businesses represents the excess
of the consideration transferred, the amount of any non-controlling interest
in the acquiree and the acquisition-date fair value of any previous equity
interest in the acquiree over the fair value of the net identifiable assets
acquired.
Impairment reviews are performed annually with any impairment losses being
recognised immediately in the profit and loss account.
2.11. Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently
measured at cost less any accumulated impairment losses. The investments are
assessed for impairment at each reporting date and any impairment losses are
recognised immediately in the profit and loss account. Costs associated with
the acquisition of subsidiaries are recognised in the profit and loss account
as an exceptional item.
2.12. Impairment of fixed assets
At each reporting end date, the Group reviews the carrying amounts of its
tangible fixed assets to determine whether there is any indication that those
assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent
of the impairment loss (if any). Where it is not possible to estimate the
recoverable amount of an individual asset, the Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and
value-in-use. Any impairment loss and reversal of losses are recognised in the
profit and loss account.
2.13. Inventories and work in progress
Property, including land held under development, acquired or being constructed
for sale in the ordinary course of business, rather than to be held for rental
or capital appreciation, is held as stock and is measured at the lower of cost
and net realisable value.
Cost comprises the invoiced value of the goods purchased and includes
attributable direct costs, labour and overheads and where possible and
directly attributable to site, finance costs will be included.
Net realisable value is the estimated selling price in the ordinary course of
the business, based on market prices at the reporting date and discounted for
the time value of money if material, less estimated costs of completion and
the estimated costs necessary to make the sale. Any excess of the carrying
amount of stocks over its net realisable value is recognised as an impairment
loss in the profit and loss account.
At each reporting date, an assessment is made for impairment. Any excess of
the carrying amount of stock over its estimated selling price less costs to
complete and sell is recognised as an impairment loss in the profit and loss
account.
Where sites are 'secured' via option agreements, these sites are only included
as stock when the agreement becomes unconditional.
Options included as part of stock are stated at the lower of cost and net
realisable value.
2.14. Financial instruments
Financial instruments are recognised in the balance sheet when the Group
becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in
the financial statements, when there is a legally enforceable right to set off
the recognised amounts and there is an intention to settle on a net basis or
to realise the asset and settle the liability simultaneously.
Financial assets at amortised cost
Financial assets are recognised initially at cost. Subsequent to initial
recognition they are measured at amortised cost using the effective interest
rate method, less any impairment losses.
Loans outside the Group are valued at the recoverable amount and a market rate
of interest is charged.
Impairment of financial assets
The Group recognises an allowance for expected credit losses for all debt
instruments not held at fair value through the profit and loss account.
Expected credit losses are based on the difference between the contracted cash
flows due in accordance with the contract and all the cash flows that the
Group expects to receive, discounted at an approximation of the original
effective interest rate.
For trade receivables and, in the Parent Company, intercompany receivables,
the Group applies a simplified approach in calculating expected credit losses.
The Group does not track changes in credit risk but instead recognises a loss
allowance based on lifetime expected credit losses at each reporting date.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash
flows from the asset expire or are settled, or when the Group transfers the
financial asset and substantially all the risks and rewards of ownership to
another entity, or if some significant risks and rewards of ownership are
retained but control of the asset has transferred to another party that is
able to sell the asset in its entirety to an unrelated third party.
Financial liabilities
All of the Group's financial liabilities are measured at fair value or
amortised cost.
Other financial liabilities
Other non-derivative financial liabilities are initially measured at fair
value. Subsequent to initial recognition, these liabilities are measured at
amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of
a financial liability and of allocating interest expense over the relevant
period. The effective interest rate is the rate that exactly discounts
estimated future cash payments through the expected life of the financial
liability to the net carrying amount on initial recognition.
Derecognition of other financial liabilities
Financial liabilities are derecognised when the Group's contractual
obligations expire or are discharged or cancelled.
2.15. Deferred and contingent consideration
Deferred consideration payments are initially recognised at fair value at the
date of acquisition which is based on the timing of the cash outflows and an
appropriate discount rate. It is subsequently measured at amortised cost.
Contingent consideration is based on an assessment of the likelihood of the
payment becoming due. It is initially recognised at fair value at the date of
acquisition and subsequently measured at fair value through the profit and
loss account.
2.16. Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with
banks and bank overdrafts. Bank overdrafts are shown within borrowings in
current liabilities.
2.17. Dividends
Dividends are recognised as liabilities in the period in which the dividends
are approved and once they are no longer at the discretion of the Company.
2.18. Leases
All leases are accounted for by recognising a right-of-use asset and a lease
liability except for leases of low value assets (less than £5,000) and leases
with a duration of 12 months or less.
Lease liabilities are measured at the present value of the contractual
payments due to the lessor over the lease term, with the discount rate
determined by reference to the Group's incremental borrowing rate at
commencement of the lease.
Right-of-use assets are initially measured at the amount of the lease
liability, reduced for any lease incentives received. Subsequent to initial
measurement, lease liabilities increase as a result of interest charged at a
constant rate on the balance outstanding and are reduced for lease payments
made. Right-of-use assets are amortised on a straight-line basis over the
remaining term of the lease. Right-of-use assets comprise the Group's existing
premises in Elgin, Larbert, Inverness and Glasgow along with certain items of
office equipment and motor vehicles.
2.19. Equity instruments
An equity instrument is any contract that evidences a residual interest in the
assets of a Group after deducting all of its liabilities. Equity instruments
issued by the Group are recorded at the proceeds received net of share issue
costs. Share capital represents the amount subscribed for shares at nominal
value.
The share premium account represents premiums received on the initial issuing
of the share capital. Any share issue costs associated with the issuing of
shares are deducted from share premium, net of any related income tax
benefits. Any bonus issues are also deducted from share premium.
Retained earnings include all current and prior period results as disclosed in
the profit and loss account.
2.20. Share-based payments
Equity-settled share-based payments are measured at fair value at the date of
grant and recognised as an expense over the vesting period. The amount
recognised as an expense is adjusted for leavers to the scheme. Fair value is
measured by use of a relevant pricing model.
2.21. Provisions
Provisions include dilapidations to cover the Group's leased properties with
an upfront liability recognised. Maintenance provisions relate to the costs to
come on developments where the final homes have been handed over.
3. Segmental reporting
The Group has only one reportable operating segment, being housebuilding
within the UK, under the control of the Board. The Board has been identified
as the Chief Operating Decision Maker as defined under IFRS 8 Operating
Segments.
The Board regularly reviews the Group's profit and loss account and balance
sheet position at both a divisional and consolidated level. Each of these
divisions is an operating segment as defined by IFRS 8 in that the Directors
assess performance and allocate resources at this level. The divisions have
been aggregated into one reporting segment on the basis that they share
similar economic characteristics. In addition, each division builds and
delivers residential homes, uses consistent methods of construction, sells
homes to both private customers and housing associations, has a comparable
sales process and operations, and are all subject to the same macroeconomic
factors including mortgage availability and Government policy.
During the year, the Group sold undeveloped land across 5 sites to Barratt
Redrow plc for £60.3m, this represents 21.5% of total revenue.
As the Group operates solely in the United Kingdom segment, reporting by
geographical region is not required.
2025 2024
Revenue £000 £000
Private housing 155,776 184,734
Affordable housing 49,380 46,975
Contract housing 10,976 4,995
Land sales 60,507 28,055
Other 3,918 1,768
Total revenue 280,557 266,527
Gross profit 52,122 43,372
Administrative expenses (27,609) (26,485)
Exceptional items (1,032) (898)
Other operating income 711 1,021
Finance income 361 159
Finance expenses (5,534) (7,501)
Profit before tax 19,019 9,668
Taxation (4,923) (2,120)
Profit for the period 14,096 7,548
4. Taxation
2025 2024
£000 £000
Current tax
UK corporation tax on profits for the current period 4,952 2,824
Adjustments in respect of prior periods 127 (43)
5,079 2,781
Deferred tax
Origination and reversal of timing differences (77) (660)
Adjustments in respect of prior periods (79) (1)
(156) (661)
4,923 2,120
The charge for the year can be reconciled to the standard rate of tax as
follows:
2025 2024
£000 £000
Profit before tax 19,019 9,668
4,755 2,417
Tax at the UK corporation tax rate of 25% (2024: 25%)
Effects of:
Tax effect of expenses that are not deductible in determining taxable profit 383 55
Adjustments in respect of prior years 127 (43)
Depreciation on assets not qualifying for tax allowances 16 (42)
Deferred tax adjustments in respect of prior years (79) (1)
Temporary difference not recognised (226) 34
Other timing differences (89) (27)
Adjust deferred tax to closing average rate (1) (273)
Residential property tax 37 -
Tax charge for period 4,923 2,120
5. Exceptional items
2025 2024
£000 £000
Legal fees 500 -
Redundancy costs 532 898
1,032 898
6. Dividends
For the year to 31 May 2025, a final dividend of 2p per share is proposed to
be paid. No interim dividend was paid during the year.
In respect of the prior year, a final dividend of 1p per share was paid, which
amounted to £1,188,304.
7. Earnings per share
The basic earnings per share is based on the profit for the year divided by
the weighted average number of shares in issue during the year. The weighted
average number of ordinary shares for the year ended 31 May 2025 assumes that
all shares have been included in the computation based on the weighted average
number of days since issue.
In respect of diluted earnings per share, the weighted average is calculated
by adjusting for all outstanding share options that are potentially dilutive
(i.e. where the exercise price is less than the average market price of the
shares during the year).
2025 2024
£000 £000
Profit for the year attributable to owners of the Company 14,096 7,548
Adjusted for the impact of tax adjusted exceptional costs in the year 945 811
Adjusted earnings 15,041 8,359
Weighted average number of ordinary shares for the purpose of basic earnings 118,839,353 118,572,439
per share
Effect of dilutive potential shares: share options 6,082,522 4,830,426
Weighted average number of ordinary shares for the purpose of diluted earnings 124,921,875 123,402,865
per share
Earnings per ordinary share
Basic earnings on profit for the year 11.86p 6.36p
Diluted earnings on profit for the year 11.28p 6.12p
Adjusted earnings per ordinary share (1)
Basic earnings on profit for the year 12.66p 7.05p
Diluted earnings on profit for the year 12.04p 6.77p
((1) ) Adjusted earnings is presented as an
additional performance measure and is stated before exceptional items and is
used in adjusted EPS calculation.
8. Bank borrowings
2025 2024
Secured borrowings: £000 £000
Bank loans 29,931 54,839
Bank overdrafts 351 -
30,282 54,839
Less: payable within one year (30,282) (54,839)
Payable after one year - -
The bank loan comprises a revolving credit facility of £87.5m that was due to
expire in January 2026. Subsequent to the year end, this has been replaced by
a new three-year revolving credit facility of £77.5m. The revolving credit
facility level of £77.5m will reduce to £47.5m in August 2026 until August
2028 in line with the Group strategy of reducing debt. The facility attracts
an interest rate of 2.1% per annum above Bank of England SONIA (Sterling
overnight index average response rate) and is secured over certain of the
Group's properties, with a 31 May 2025 work in progress value of £83.8m.
At 31 May 2025, the Group had available £57.5m (2024: £32.5m) of undrawn
committed borrowing facilities.
At 31 May 2025, the Group had an overdraft facility of £2.5m (2024: £12.5m).
In August 2025, the overdraft facility was renewed at a level of £2.5m.
The Group's lender has a floating charge over the assets of the Company and of
its subsidiaries.
9. Deferred consideration
As part of acquiring the housebuilding business of Mactaggart & Mickel
Group Limited, there was a further £30,781,108 of deferred consideration
payable. This is payable quarterly in arrears as homes are sold starting from
August 2023. There is a minimum annual payment of £7,695,277, subject to a
one-off 12-month payment holiday, which has been taken for year ended 31 May
2025. The outstanding discounted amount payable at the period end was
£21,960,440 (2024: £24,462,203).
2025 2024
£000 £000
Acquisition of the housebuilding business of Mactaggart & Mickel Group 21,960 24,462
Limited
21,960 24,462
2025 2024
£000 £000
Deferred consideration < 1 year 7,469 7,339
Deferred consideration > 1 year 14,491 17,123
21,960 24,462
10. Contingent consideration
As part of the purchase agreement of Dawn Homes Holdings Limited, there was a
further £2,500,000 payable for an area of land if (i) the Group make a
planning application when it reasonably believes the council will recommend
approval; or (ii) it is zoned by the council. The Directors have assessed the
likelihood of the land being zoned and have included a liability of
£2,000,000 based on 80% probability. The outstanding amount payable at the
period end included within liabilities is £2,000,000 (2024: £2,000,000). The
remaining £500,000 (20% on the £2,500,000 still to be paid) has been treated
as a contingent liability due to the uncertainty over the future payment.
2025 2024
£000 £000
Acquisition of Dawn Homes Holdings Limited 2,000 2,000
2,000 2,000
11. Provisions
Dilapidation provisions are included for all rented buildings within the
Group. Maintenance provisions relate to costs to come on developments where
the final homes have been handed over.
2025 2024
£000 £000
Dilapidation provision 113 113
Maintenance provision 5,613 6,162
5,726 6,275
The movement in the provision accounts are as follows:
Dilapidation Maintenance Total
£000 £000 £000
Balance as at 1 June 2024 113 6,162 6,275
Additional provision - 3,421 3,421
Amount utilised - (3,482) (3,482)
Amount released - (488) (488)
Balance as at 31 May 2025 113 5,613 5,726
2025 2024
£000 £000
Provisions < 1 year 1,871 2,018
Provisions > 1 year 3,855 4,257
5,726 6,275
12. Share capital
The Company has one class of ordinary share which carry full voting rights but
no right to fixed income or repayment of capital. The share capital account
records the nominal value of shares issued. The share premium account records
the amount above the nominal value received for shares sold, less share issue
costs.
Ordinary shares of 0.125p - authorised, allotted, called up and fully paid Number of shares Share capital Share premium
£000 £000
At 1 June 2024 118,669,124 148 78,744
Share issue 373,281 1 -
At 31 May 2025 119,042,405 149 78,744
During the year, 373,281 shares (2024: 173,123) were issued in satisfaction of
share options exercised for a consideration of £467 (2024: £26).
Share-based payments
During the year, the Group operated four share-based schemes.
Share-related share options scheme
The Group operates a Savings related Share Option Scheme that is open to all
employees. Grant options were made in October 2024 and become exercisable
after 3 years, subject to employees remaining in continuous employment.
Employees enter into a savings contract with Equiniti Limited who administers
the scheme. The options are granted at a 10% discount of the share price at
the date of grant and lapse if not exercised within six months of maturity.
Special provisions apply to employees who leave their employment for ill
health, redundancy or retirement.
Long-Term Incentive Plan (LTIP)
The Company operates an LTIP for senior management to retain and align their
interests with shareholders. The LTIP is split into a CSOP, ESOP and
Performance Share Plan ("PSP") scheme. The PSP was introduced during the prior
year and under which key executives could be granted conditional "whole share"
awards (i.e. rights to acquire shares where the individual is required to pay
a zero or negligible exercise price) the vesting of which is normally
conditional on both continued employment and the satisfaction of specified
performance measures.
Fair value of share options
Options are valued using the Black-Scholes option-pricing model. No
performance conditions are included in the fair value calculation.
CSOP
2025 2024
Number of shares Weighted average exercise price (pence) Number of shares Weighted average exercise price (pence)
Options at the beginning of the year 583,638 114.64 606,413 115.28
Lapsed during the year (34,339) 108.90 (22,775) 131.72
Options at the year end 549,299 115.00 583,638 114.64
Share option Grant Price Number of shares at year end Exercise price (p) Vesting period
(p) (years)
CSOP - 16(th) October 2017 106.00 279,520 106.00 3
CSOP - 8(th) December 2017 111.00 27,027 111.00 3
CSOP - 3(rd) May 2018 134.00 22,388 134.00 3
CSOP - 16(th) May 2018 134.00 91,746 134.00 3
CSOP - 1(st) October 2018 122.50 92,127 122.50 3
CSOP - 4(th) June 2019 108.50 36,491 108.50 3
2025 2024
ESOP Number of shares Weighted average exercise price (pence) Number of shares Weighted average exercise price (pence)
Options at the start of the year 1,683,481 118.71 1,727,589 118.80
Lapsed during the year (94,537) 117.56 (44,108) 122.14
Options at the year end 1,588,944 118.78 1,683,481 118.71
Share option Grant Price Number of shares at year end Exercise price (p) Vesting period
(p) (years)
ESOP - 16(th) October 2017 106.00 417,130 106.00 3
ESOP - 3(rd) May 2018 134.00 72,761 134.00 3
ESOP - 16(th) May 2018 134.00 11,157 134.00 3
ESOP - 1(st) October 2018 122.50 1,087,896 122.50 3
2025 2024
SAYE Number of shares Weighted average exercise price (pence) Number of shares Weighted average exercise price (pence)
Options at the start of the year 424,785 130.50 1,084,972 130.50
Granted during the year 1,489,050 97.00 - -
Lapsed during the year (633,742) 119.45 (660,187) 130.50
Options at the year end 1,280,093 97.00 424,785 130.50
Share option Grant Price Number of shares at year end Exercise price (p) Vesting period
(p) (years)
SAYE - 1(st) November 2024 108.00 1,280,093 97.00 3
2025 2024
PSP Number of shares Weighted average exercise price (pence) Number of shares Weighted average exercise price (pence)
Options at start of the year 4,385,999 0.13 2,853,274 0.13
Granted during the year 1,330,430 0.13 2,161,933 0.13
Lapsed during the year (1,204,747) 0.13 (456,085) 0.13
Exercised during the year (373,281) 0.13 (173,123) 0.13
Options at the year end 4,138,401 0.13 4,385,999 0.13
Share option Grant Price Number of shares at year end Exercise price (p) Vesting Period
(p) (years)
PSP - 9(th) January 2020 0.13 7,337 0.13 3
PSP - 30(th) October 2020 0.13 15,195 0.13 3
PSP - 21(st) December 2021 0.13 23,861 0.13 3
PSP - 28(th) March 2023 0.13 743,325 0.13 3
PSP - 30(th) October 2023 0.13 2,090,047 0.13 3
PSP - 28(th) October 2024 0.13 1,258,636 0.13 3
Inputs used to determine fair value of options
CSOP ESOP SAYE PSP
Expected volatility 29.00% 29.00% 29.00% 17.83%
Risk-free interest rate 0.49% 0.49% 0.49% -1.91%
Expected dividends - - - 2.5%
Fair value of options 34.00p 39.00p 37.00p 49.04p
Charge per option 32.00p 37.00p 35.00p 49.04p
Expected volatility was calculated using historical share price information of
the housebuilding sector for the CSOP and ESOP and the 12-month average
Springfield share price prior to the grant of the PSP options.
CSOP - nil (2024: nil) of options were exercised during the year and 549,299
(2024: 547,147) shares were exercisable.
ESOP - nil (2024: nil) of options were exercised during the year and 1,588,944
(2024: 1,683,481) shares were exercisable.
SAYE - nil (2024: nil) of options were exercised during the year and nil
(2024: 424,785) shares were exercisable.
PSP - 373,281 (2024: 173,123) of options were exercised during the year and
46,393 (2024: 183,810) shares were exercisable.
Charge for share-based incentive schemes
The total charge for the year relating to employee share-based plans was
£139k (2024: £26k), all of which
related to equity-settled share-based payment transactions.
13. Transactions with related parties
Other related parties include transactions with retirement schemes in which
Directors and close family members of key management personnel are
beneficiaries. During the year, dividends totalling £286k (2024: £nil) were
paid to key management personnel (Board of Directors and the members of the
Operational Board). Dividends were paid to Board of Directors as follows:
2025 2024
Name of Director £000 £000
Mr Sandy Adam 276 -
Mr Innes Smith 10 -
286 -
The remuneration of the key management personnel (Plc Directors and Group
Directors) of Springfield Properties Plc is set out below in aggregate for
each of the categories specified in IAS 24 - Related Party Disclosures:
2025 2024
£000 £000
Short-term employee benefits 4,874 2,542
Post employment benefits 281 248
Share-based payments 110 9
5,265 2,799
During the year, the Group entered into the following transactions with
related parties:
Sale of goods Purchase of goods
2025 2024 2025 2024
£000 £000 £000 £000
Bertha Park Limited (1) 11,258 4,906 - 319
Other entities that key management personnel have control, significant 64 41 16 20
influence or hold a material interest in
Key management personnel 13 46 - -
Other related parties 13 156 2,518 2,016
11,348 5,149 2,534 2,355
Sales to related parties represent those undertaken in the ordinary course of
business.
Rent paid
2025 2024
£000 £000
Entities that key management personnel have control, significant influence or 187 80
hold a material interest in
Other related parties 103 64
290 144
2025 2024
£000 £000
Interest received:
Entities that key management 125 125
personnel have control, significant influence or
hold a material interest in (short-term)
125 125
The following amounts were outstanding at the reporting end date:
2025 2024
£000 £000
Amounts receivable:
Bertha Park Limited (1) 9,394 7,259
Other entities that key management personnel have control, significant 2 -
influence or hold a material interest in (short-term)
Key management personnel 4 1
Other related parties 2 36
9,402 7,296
2025 2024
£000 £000
Accounts payable:
Other related parties 2,928 2,343
2,928 2,343
Amounts owed to/from related parties are included within creditors and debtors
respectively at the year-end. No security has been provided on any balances.
Transactions between Group companies have been eliminated on consolidation and
are not disclosed in this note.
(1) Bertha Park Limited is a Company in which Sandy Adam and Innes Smith are
Directors. During the year, the Group made sales to Bertha Park Limited of
£11,348k (2024: £4,906k) in relation to a build contract. At the year-end,
£4,394k (2024: £2,259k) is included in trade debtors and included within
other debtors is a loan of £5,000k (2024: £5,000k). During the year, the
Group had purchases from Bertha Park Limited of £nil (2024: £319k) in
relation to a build contract.
14. Analysis of net debt
The analysis of net debt is as follows:
2025 2024
£000 £000
Cash in hand and bank 9,388 14,935
Bank borrowings - loan (29,931) (54,839)
Bank borrowings - overdraft (351) -
(20,894) (39,904)
Lease liability (5,511) (5,538)
Net debt (26,405) (45,442)
Deferred consideration (21,960) (24,462)
(48,365) (69,904)
Reconciliation of net cashflow to movement in net debt is as follows:
At 1 June 2024 New leases Cashflow Fair value At 31 May 2025
£000 £000 £000 £000 £000
Cash and cash equivalents 14,935 - (5,547) - 9,388
Bank borrowings - loan (54,839) - 24,908 - (29,931)
Bank borrowings - overdraft - - (351) (351)
Leases (5,538) (1,705) 2,142 (410) (5,511)
Net debt (45,442) (1,705) 21,152 (410) (26,405)
Deferred consideration (24,462) - 2,857 (355) (21,960)
(69,904) (1,705) 24,009 (765) (48,365)
At 1 June 2023 New leases Cashflow Fair value At 31 May 2024
£000 £000 £000 £000 £000
Cash and cash equivalents 8,909 - 6,026 - 14,935
Bank borrowings (70,673) - 15,834 - (54,839)
Leases (5,900) (1,593) 2,234 (279) (5,538)
Net debt (67,664) (1,593) 24,094 (279) (45,442)
Deferred consideration (36,117) - 12,141 (486) (24,462)
(103,781) (1,593) 36,235 (765) (69,904)
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. END FR FLFFTARIELIERecent news on Springfield Properties
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