REG - Springfield Props. - Springfield signs £15m affordable housing contract

Springfield PropertiesAnnouncement

06/02/2024 07:00

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RNS Number : 0967C  Springfield Properties PLC  06 February 2024

6 February 2024

 

Springfield Properties plc

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

 

Springfield signs £15m affordable housing contract

 

Springfield Properties plc (AIM: SPR), a leading housebuilder in Scotland
focused on delivering private and affordable housing, announces that it has
signed a new contract, worth £15.3m, with Highland Housing Alliance ("HHA")
for the delivery of affordable housing. The contract includes an initial bulk
sale of housing, followed by a design and build aspect.

 

The Group will receive £4.1m for a bulk sale of housing, which is scheduled
to complete during the current financial year. The design and build phase,
which is worth £11.2m, is due to commence in the coming weeks, with the
majority of the revenue to be recognised in the Group's next financial year.
 

 

Innes Smith, CEO of Springfield Properties, said: "Since reengaging with
affordable housing providers, we have been greatly encouraged by the interest
that we are receiving. Within the last eight months, we have signed contracts
worth c. £40m with local housing authorities and other affordable housing
providers. Alongside the design and build contract, we are pleased to have
this opportunity to deliver a bulk sale that will support our overall sales
rates as well as our focus on maximising cash generation.

 

"As well as contributing towards the Scottish Government's ambitious
affordable housing targets, these homes will help meet the surge in demand for
housing in the highlands with the Inverness and Cromarty Firth Green Freeport
expected to bring 10,000 new jobs to the area. Our strong land-holding across
the highlands means we are well placed to assist with housing delivery and we
look forward to working with HHA to provide these much-needed homes."

 

 

Enquiries

 

 Springfield Properties
 Sandy Adam, Chairman                                          +44 1343 552550

 Innes Smith, Chief Executive Officer

 Iain Logan, Chief Financial Officer

 Singer Capital Markets
 Shaun Dobson, James Moat, Oliver Platts (Investment Banking)  +44 20 7496 3000

 Gracechurch Group
 Harry Chathli, Claire Norbury, Henry Gamble                   +44 20 4582 3500

 

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)

 

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