REG - Springfield Props. - Interim Results
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RNS Number : 2428T Springfield Properties PLC 17 February 2026
17 February
2026
Springfield Properties plc
("Springfield", the "Company", the "Group" or the "Springfield Group")
Interim Results
Springfield Properties (AIM: SPR), a leading housebuilder in Scotland focused
on delivering private and affordable housing, announces its interim results
for the six months ended 30 November 2025.
Financial Highlights
H1 2026 H1 2025 Change
£m £m
Revenue 108.0 105.6 2%
Private housing revenue 65.4 72.1 (9)%
Affordable housing revenue 25.8 20.4 26%
Contract housing revenue 3.6 6.0 (40)%
Land sales 9.8 5.1 92%
Other revenue 3.4 2.0 70%
Gross margin (%) 15.8% 17.7% (190)bps
Administrative expenses* 11.6 12.4 (6)%
Operating profit 5.3 6.1 (13)%
Adj. operating profit* 5.6 6.4 (13)%
Profit before tax 3.7 3.5 6%
Adj. profit before tax* 4.1 3.8 8%
Basic EPS (p) 2.39p 2.27p 5%
Adj. basic EPS* (p) 2.61p 2.46p 6%
Net bank debt 39.6 62.9 (37)%
* Adjusted to exclude exceptional costs of £0.3m (H1 2025: £0.3m) (See the
Financial Review for further detail)
· Solid results, with an increase in profit before tax and substantial
reduction in net bank debt compared with the same point in the previous year,
give the Board confidence in delivering results for the full year in line with
market expectations and to continue with the Group's dividend policy
Operational Highlights
· Initial agreement signed, post period, 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
· Total completions of 316 (H1 2025: 361)
· On track to deliver revenue growth in private housing for the full
year based on orderbook and usual seasonality
· Strong performance in affordable housing with almost all of FY 2026
forecast revenue for affordable housing already delivered or contracted
· Large, high-quality land bank of 7,305 owned and contracted plots,
63% of which have planning permission, and 6,293 strategic plots
o Includes 4,362 owned and contracted plots and 4,652 strategic plots in the
North of Scotland in close proximity to key work areas, demonstrating the
Group's strong position in the region
Innes Smith, Chief Executive Officer of Springfield Properties, said: "We are
pleased to have performed in line with our expectations for the first half,
with an increase in profit and a significant reduction in bank debt compared
with the same time last year. We also achieved an important strategic
milestone with the signing, post period, of our first agreement to provide
housing to support the delivery of crucial infrastructure upgrades across the
North of Scotland. We are continuing to discuss further projects with
infrastructure providers, and we remain very excited about the substantial
opportunities in the region.
"Looking to the full year, we continue to expect to deliver underlying growth
when excluding the exceptional contribution of land sales to FY 2025. We are
hopeful that an increase in consumer confidence following the publication of
the UK Budget, along with interest rate cuts, will provide a boost to
homebuying. 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."
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)
Analyst Presentation
Innes Smith, CEO, and Iain Logan, CFO, will be hosting a presentation for
analysts at 9.00am GMT today at the offices of Cavendish, 1 Bartholomew Close,
London, EC1A 7BL. To register to attend, please contact:
springfield@gracechurchpr.com (mailto:springfield@gracechurchpr.com)
Results Investor Webinar
Management will be presenting to shareholders, via a webinar hosted by Equity
Development, at 9.00am GMT on Wednesday 18 February 2026. Investors can
register their attendance for the webinar here:
https://www.equitydevelopment.co.uk/news-and-events/springfield-properties-interim-results-investor-presentation-18-february-2026
(https://www.equitydevelopment.co.uk/news-and-events/springfield-properties-interim-results-investor-presentation-18-february-2026)
Operational Review
Springfield achieved an increase in revenue to £108.0m (H1 2025: £105.6m) as
strong growth in affordable housing and land sales offset the expected
reduction in private housing. Total completions were 316 (H1 2025: 361), which
reflects the impact of market conditions on private housing and the Group's
strategic refocus on future opportunities in the North of Scotland. The Group
is pleased to note that there has been improvement in consumer confidence
since the period end and, alongside usual seasonality and a very strong
orderbook in affordable housing, Springfield remains on track to deliver
higher revenue in the second half of the year. In addition, the Group made
excellent progress during the period in implementing its new strategy to
capitalise on the substantial opportunities in the North of Scotland, which
are being driven by the requirement for housing to support the delivery of
the incoming energy security infrastructure and renewable development.
Agreement with SSEN Transmission
During the first half of the year, the Group advanced its discussions with
infrastructure providers for Springfield to satisfy their housing requirements
in the North of Scotland. This culminated in the Group signing, post period,
an initial agreement with SSEN Transmission towards delivering 293 homes at
six sites across the Highlands, Moray and Aberdeenshire.
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, 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. The homes will accommodate workers involved in
SSEN Transmission's energy upgrade projects that will contribute to providing
the UK with energy security.
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 major
infrastructure providers to deliver new housing on a similar basis to support
the upgrade of crucial energy infrastructure in the North of Scotland.
Land Bank
As at 30 November 2025, the Group had a total of 3,865 owned plots (31 May
2025: 3,912), of which 75% had planning permission (31 May 2025: 72%), and
3,440 contracted plots (31 May 2025: 3,367), of which 50% had planning
permission (31 May 2025: 58%). This includes 4,362 owned and contracted plots
(31 May 2025: 4,030) across 62 sites (31 May 2025: 50) in the North of
Scotland.
In addition, Springfield has established a significant strategic land bank
with options over 6,293 plots as at 30 November 2025, of which 4,652 plots are
in the North of Scotland. In FY 2025, the Group submitted land for
consideration in response to the Highland Council's call for new sites to be
allocated for housing development in their forthcoming Local Development Plan.
The Group is continuing to strengthen its position in the North of Scotland by
increasingly securing options over this land.
The total owned and contracted land bank equated to nine years of activity and
had a gross development value at 30 November 2025 of £1.9bn (31 May 2025:
£1.8bn).
At period-end, the Group was active on 44 developments (31 May 2025: 40) and
during the period seven developments were completed and 11 new developments
became active.
During the period, the Group completed profitable land sales of £9.8m (H1
2025: £5.1m). This primarily represents the sale of the final site under the
Group's agreement with Barratt Redrow plc ("Barratt") that was entered in FY
2025. Springfield continues to make selective land sales and interest in its
large, high-quality land bank remains strong.
Private Housing
In private housing, prices remained resilient across with Group's brands with
an increase in average selling price ("ASP") to £344k (H1 2025: £313k) due
to housing mix. This served to partly mitigate the reduction, as expected, in
completions to 190 (H1 2025: 230). The reservation rate was slightly lower
than the first half of the prior year due to a lengthening of the sales cycle
in line with the wider housebuilding industry. This led to increased time and
cost to complete sites, which impacted gross margin in private housing during
the period.
The Group is pleased to note that, following the publication of the UK Budget
at the end of November 2025 and with the announced measures being less severe
than had been widely predicted, consumer confidence has begun to improve. As a
result, and along with normal seasonality, the Group continues to expect to
deliver higher revenue in the second half of the year, and an increase in
revenue for FY 2026 compared with FY 2025.
As at 30 November 2025, Springfield was active on 27 private housing
developments (31 May 2025: 25), with five active developments added during the
period and three developments completed. In total, as at 30 November 2025, the
owned private housing land bank consisted of 2,570 plots (31 May 2025: 2,598
plots), of which 71% had planning permission (31 May 2025: 68%).
Affordable Housing
The Group performed well in affordable housing, with growth in the number of
completions to 113 (H1 2025: 95). The ASP in affordable housing increased to
£228k (H1 2025: £215k). The Group has continued to secure new contracts and
now has almost all of forecast FY 2026 revenue for its affordable housing
activity delivered or contracted. Accordingly, the Board remains confident of
achieving revenue growth in affordable housing for the full year.
The number of active affordable housing developments was 16 at 30 November
2025 (31 May 2025: 14), with six active developments added and four active
developments completed during the period. As at 30 November 2025, the total
owned affordable housing land bank consisted of 1,295 plots (31 May 2025:
1,314), of which 83% had planning permission (31 May 2025: 82%).
Contract Housing
In contract housing, Springfield provides development services to third party
private organisations and receives revenue based on costs incurred plus fixed
markup. To date, this has largely consisted of services provided to Bertha
Park. At 30 November 2025, the contract housing land bank with planning
consent consisted of 487 plots (31 May 2025: 500). The 13 homes completed
during the period (H1 2025: 36) were private homes at Bertha Park (H1 2025: 19
private homes and 17 affordable homes completed at Bertha Park).
Financial Review
Revenue H1 2026 H1 2025 Change
£'000 £'000
Private housing 65,373 72,068 (9.3)%
Affordable housing 25,800 20,431 26.3%
Contract housing 3,618 6,012 (39.8)%
Land sales 9,823 5,065 93.9%
Other 3,375 2,064 63.5%
TOTAL 107,989 105,640 2.2%
For the six months ended 30 November 2025, revenue increased to £108.0m (H1
2025: £105.6m). Private housing remained the largest contributor to Group
revenue, accounting for 60.5% of total sales (H1 2025: 68.2%). Affordable
housing contributed 23.9% (H1 2025: 19.3%) and contract housing accounted for
3.4% (H1 2025: 5.7%). Land sales accounted for 9.1% (H1 2025: 4.8%) and other
revenue for 3.1% (H1 2025: 2.0%).
Gross margin was 15.8% (H1 2025: 17.7%). This primarily reflects a reduction
in gross margin in private housing, which was impacted by the lengthening of
the sales cycle and time to complete sites, and the exceptional gross margin
of the land sales in the first half of the prior year. As a result, gross
profit for the period was £17.1m (H1 2025: £18.7m).
Administrative expenses, excluding exceptional items, were reduced to £11.6m
(H1 2025: £12.4m) and accounted for 10.7% of revenue (H1 2025: 11.7%). This
reflects a continued focus on carefully managing costs across the Group and
restructuring in line with the Group's new strategy.
Exceptional items were £0.3m (H1 2025: £0.3m), which mainly relates to
restructuring costs.
Operating profit was £5.3m (H1 2025: £6.1m) and, excluding exceptional
items, it was £5.6m (H1 2025: £6.4m). The reduction was due to the lower
gross profit.
Net finance costs were reduced to £1.6m (H1 2025: £2.6m) as a result of
lower bank interest payments primarily due to the significant reduction in
bank debt, but also lower interest rates.
Statutory profit before tax increased to £3.7m (H1 2025: £3.5m) and adjusted
profit before tax and exceptional items to £4.1m (H1 2025: £3.8m). This
reflects the reduction in operating profit being offset by the lower net
finance costs.
Basic earnings per share (excluding exceptional items) increased to 2.61 pence
(H1 2025: 2.46 pence). Statutory basic earnings per share increased to 2.39
pence (H1 2025: 2.27 pence).
Net bank debt at 30 November 2025 was £39.6m (31 May 2025: £20.9m; 30
November 2024: £62.9m). The increase over the six-month period reflects the
normal seasonality of the working capital cycle. The reduction compared with
same point of the prior year is due the strategic actions undertaken in FY
2025 to reduce the Group's debt.
Springfield secured a new revolving credit facility ("RCF") for three 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 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
The Group achieved an excellent customer satisfaction score of 97% from
customers surveyed during the first half of the year - maintaining the high
performance of the same period of the prior year (H1 2025: 97%). The Group
continued to deliver a quality service for customers under the principles of
the New Homes Quality Code (the "Code"), resulting in another 100% scoring in
an on-site audit. The Group has been preparing for the launch of the new
version of the Code in March 2026, including the rollout of training for all
customer facing employees post period. During the period, the Group was
successfully re-certified for ISO 9001 (Quality Management).
Environment and People - ESG
The Group's new strategy for housing delivery in the North of Scotland will
contribute to the plans for the decarbonisation of the nation, helping to
ensure future UK 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 designed to support sustainable living. They are energy
efficient with high levels of insulation and heating powered by air-source
technology. The Group is also proud to have manufactured timber kits for its
homes off-site for decades. This approach enhances efficiency, consistency and
quality across its developments.
The new strategy has reinforced the Group's commitment to skills development
as it prepares for the anticipated growth in the North of Scotland.
Springfield is collaborating with skills agencies to attract new people into
the region and increase training opportunities to maximise home-grown talent.
Twenty-five new apprentices were recruited across the Group between
June-September 2025.
Alongside attracting new talent, a continued priority for the Group is
fostering employee wellbeing. Investment in development has continued with
over 5% of staff undertaking formal qualifications as at period end. A variety
of benefits are in place to retain talent, including initiatives such as gym
membership, private healthcare and employee assistance schemes.
During the period, the Group recertified in ISO 4001 (Environmental System)
and ISO 45001 (Occupational Health & Safety Management System).
Markets
The scale of demand for new homes continues to underpin the fundamentals of
the Group's business. Across Scotland, housing need is at an all-time high,
acknowledged by the Scottish Government with a declaration of a housing
emergency in 2024 and the announcement, in January 2026, of plans to create a
national housing agency to help boost homebuilding in Scotland. A record level
of investment of £926m has been committed for affordable housing supply for
the Scottish Government financial year commencing in April 2026. This is to
help deliver on the long-standing commitment to provide 110,000 affordable
homes by 2032. Measures have also been taken to move forward with a
legislative exemption for any rent caps introduced in local markets for Build
to Rent homes, which is expected to reestablish a supportive climate for
investment into Private Rented Sector housing supply in Scotland.
While lower levels of confidence in the economy has subdued the UK's private
housing market in recent years, the reduced construction by the industry
continues to compound housing need and demand. The levels of certainty
provided by the UK Budget announcement in November 2025 and the subsequent
reduction in interest rates in December have had a positive impact on consumer
confidence.
There continues to be greater affordability in Scotland compared with the UK
as a whole based on the ratio of average house price to annual income.
Indicators in Scotland remain positive with Zoopla predicting, in January
2026, that the best prospects in the UK for house price growth and sales in
2026 are in Scotland.
The mortgage lending community is keen to support buyers of energy-efficient,
new-build homes and changes to mortgage regulation to ease accessibility
together with a competitive product range from lenders will help service the
demand. Aspirations for the type of homes that the Group offers remain high.
The Group builds quality, spacious, energy-efficient homes in highly-desirable
areas with generous private gardens and plenty of surrounding greenspace.
The unprecedented level of economic growth occurring in the North of Scotland
is presenting unique opportunities for the Group. Job creation and the
resultant inward migration will increase the need for new homes. To
accommodate the projected growth, Local Authorities have begun engaging on
new-style Local Development Plans with The Highland Council being the first to
set a target by committing to double current housing output by delivering
24,000 new homes in the next decade.
Outlook
The Group continues to expect to achieve growth for FY 2026 when excluding the
exceptional contribution from the land sales to Barratt, in line with market
expectations. This reflects a year-on-year increase in revenue in both private
and affordable housing. In private housing, with consumer confidence having
improved since period end as well as usual seasonality, the Group remains
confident in delivering higher revenue in the second half compared with the
first half of the year and year-on-year growth. In affordable housing, almost
all of forecast FY 2026 revenue is already delivered or contracted.
Looking further ahead, Springfield remains very excited about the significant
prospects in the North of Scotland. The signing of its first agreement, post
period, with SSEN Transmission marks an important milestone towards
capitalising on the substantial opportunities in the region. The build and
multi-year lease of housing would allow the Group to receive regular income
over the course of the lease as well as having further options for
monetisation at its conclusion. 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.
Accordingly, the Board continues to look to the future with great confidence.
COnsolidated PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 30 november 2025
Unaudited Period to Unaudited Period to Audited Year to
30 November 2025 30 November 2024 31 May 2025
Note
£000 £000 £000
Revenue 4
107,989 105,640 280,557
Cost of sales
(90,929) (86,902) (228,435)
Gross profit 4
17,060 18,738 52,122
Administrative expenses before exceptional items
(11,559) (12,437) (27,609)
5 (350) (307) (1,032)
Exceptional items
Total administrative expenses (11,909) (12,744) (28,641)
Other operating income
109 122 711
Operating profit
5,260 6,116 24,192
Finance income
406 67 361
Finance costs
(1,964) (2,655) (5,534)
Profit before taxation
3,702 3,528 19,019
Taxation 6
(860) (832) (4,923)
Profit for the period and total comprehensive income 4
2,842 2,696 14,096
Profit for the period and total comprehensive income is attributable to:
- Owners of the parent
company
2,842 2,696 14,096
Earnings per share
Basic earnings per share 7
2.39p 2.27p 11.86p
Diluted earnings per share 7
2.26p 2.17p 11.28p
The Group has no items of other comprehensive income.
The accompanying notes form an integral part of these financial statements.
COnsolidated BALANCE SHEET
as at 30 november 2025
Unaudited Unaudited Audited
30 November 2025 30 November 2024 31 May 2025
Non-current assets Note £000 £000 £000
Property, plant and equipment 6,391 6,659 6,783
Intangible assets 5,306 5,565 5,435
Deferred taxation 1,852 1,787 1,852
Trade and other receivables 11,287 5,000 11,191
24,836 19,011 25,261
Current assets
Inventories 236,469 260,368 223,892
Trade and other receivables 45,445 29,227 41,096
Cash and cash equivalents 10,691 9,409 9,388
292,605 299,004 274,376
Total assets 317,441 318,015 299,637
Current liabilities
Trade and other payables 58,429 48,635 55,735
Short-term bank borrowings 359 72,262 30,282
Deferred consideration 10 14,401 7,404 7,469
Short-term obligations under lease liabilities 1,251 1,317 1,351
Provisions 12 1,607 1,390 1,871
Corporation tax 937 775 2,752
76,984 131,783 99,460
Non-current liabilities
Trade and other payables - - 1,550
Long-term bank borrowings 49,884 - -
Long-term obligations under lease liabilities 3,868 3,861 4,160
Deferred taxation 2,192 2,932 2,866
Deferred consideration 10 7,250 14,881 14,491
Contingent consideration 11 2,000 2,000 2,000
Provisions 12 3,329 2,894 3,855
68,523 26,568 28,922
Total liabilities 145,507 158,351 128,382
Net assets 171,934 159,664 171,255
Equity
Share capital 9 149 148 149
Share premium 9 78,744 78,744 78,744
Retained earnings 93,041 80,772 92,362
Equity attributable to owners of the parent company 171,934 159,664 171,255
The accompanying notes form an integral part of these financial statements.
consolidated Statement of Changes in Equity
FOR THE period ENDED 30 november 2025
Share capital Share premium Retained earnings Total
Note £000 £000 £000 £000
1 June 2024 148 78,744 79,315 158,207
Total comprehensive income for the period
- - 2,696 2,696
Share-based payments - - (51) (51)
Dividends - - (1,188) (1,188)
30 November 2024 148 78,744 80,772 159,664
Issue of shares 1 - - 1
Total comprehensive income for the period
- - 11,400 11,400
Share-based payments - - 190 190
31 May 2025 149 78,744 92,362 171,255
Total comprehensive income for the period
- - 2,842 2,842
Share-based payments - - 218 218
Dividends 8 - - (2,381) (2,381)
30 November 2025 149 78,744 93,041 171,934
The share capital accounts record the nominal value of shares issued.
The share premium account records the amount above the nominal value for
shares issued, less share issue costs.
Retained earnings represents accumulated profits less losses and
distributions. Retained earnings also includes share-based payments.
The accompanying notes form an integral part of these financial statements.
Consolidated Statement of Cash Flows
FOR THE period ENDED 30 november 2025
Unaudited Unaudited Audited
Period to 30 November 2025 Period to 30 November 2024 Year to 31 May
2025
Cash flows generated from operations £000 £000 £000
Profit for the period 2,842 2,696 14,096
Adjusted for:
Exceptional items 350 307 1,032
Taxation charged 860 832 4,923
Finance costs 1,964 2,655 5,534
Finance income (406) (67) (361)
Adjusted operating profit before working capital movement 5,610 6,423 25,224
Exceptional items (350) (307) (1,302)
Gain on disposal of tangible fixed assets (51) (147) (140)
Share-based payments 218 (51) 139
Non-cash movement - discounting - - 899
Amortisation of intangible fixed assets 130 133 263
Depreciation of tangible fixed assets 998 1,120 2,135
Operating cash flows before movements in working capital 6,555 7,171 27,488
(Increase)/decrease in inventory (12,577) (16,071) 19,511
Increase in trade and other receivables (4,063) (2,831) (20,348)
(Decrease)/increase in trade and other payables (2,084) (4,171) 7,089
Net cash (used in)/generated from operations (12,169) (15,902) 33,740
Taxation paid (3,350) (1,425) (3,675)
Net cash (outflow)/inflow from operating activities (15,519) (17,327) 30,065
Investing activities
Purchase of property, plant and equipment (166) (35) (156)
Proceeds on disposal of property, plant and equipment 74 184 244
Interest received 6 4 140
Net cash (used in)/generated from investing activities (86) 153 228
Financing activities
Proceeds from bank loans 19,953 17,422 -
Repayment of bank loans - - (24,908)
Deferred consideration paid on acquisition of subsidiary (309) (2,177) (2,857)
Payment of lease liabilities (1,016) (1,111) (2,142)
Dividends paid - - (1,188)
Interest paid (1,728) (2,486) (5,096)
Net cash inflow/(outflow) from financing activities 16,900 11,648 (36,191)
Net increase/(decrease) in cash and cash equivalents 1,295 (5,526) (5,898)
Cash and cash equivalents at beginning of period 9,037 14,935 14,935
Cash and cash equivalents at end of period 10,332 9,409 9,037
The accompanying notes form an integral part of these financial statements.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 november 2025
1. Organisation and trading activities
Springfield Properties PLC ("the Company") is incorporated and domiciled in
Scotland as a public limited company and operates from its registered office
in Alexander Fleming House, 8 Southfield Drive, Elgin, IV30 6GR.
The consolidated interim financial statements for the Group for the six-month
period ended 30 November 2025 comprise the Company and its subsidiaries and
jointly controlled entities (the "Group"). The basis of preparation of the
consolidated interim financial statements is set out in Note 2 below.
The financial information for six-month period ended 30 November 2025 is
unaudited. It does not constitute statutory financial statements within the
meaning of Section 434 of the Companies Act 2006. The consolidated interim
financial statements should be read in conjunction with the financial
information for the year ended 31 May 2025, which has been prepared in
accordance with International Accounting Standards in conformity with the
requirements of the UK-adopted international accounting standards. The
statutory financial statements for the year ended 31 May 2025 have been
delivered to the Registrar of Companies. The auditors' report on those
financial statements was unqualified, did not draw attention to any matters by
way of emphasis, and did not contain a statement under 498(2) or 498(3) of the
Companies Act 2006.
2. Basis of preparation
The interim financial statements have been prepared in accordance with IAS 34
- Interim Financial Reporting and in accordance with UK-adopted international
accounting standards.
The interim financial statements have been prepared on a going concern basis
and under the historical cost convention, except for contingent consideration.
The preparation of financial information requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. These are also disclosed in the 31 May
2025 year-end financial statements and there have not been any changes.
Although these estimates are based on management's best knowledge of the
amounts, events or actions, actual events may ultimately differ from those
estimates.
The interim financial statements do not include all financial risk information
and disclosures required in the annual financial statements and they should be
read in conjunction with the financial information that is presented in the
Group's audited financial statements for the year ended 31 May 2025. There has
been no significant change in any risk management polices since the date of
the last audited financial statements.
Going concern
The Group's performance in the six months to 30 November 2025 is in line with
management expectations and the Group is on track to report results for the
year to 31 May 2026 in line with market expectations.
Net bank debt at 30 November 2025 was £39.6m (30 November 2024: £62.9m; 31
May 2025: £20.9m).
The revolving credit facility of £77.5m has an expiry date in August 2028.
The Group also has a £2.5m overdraft facility in place until August 2026.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.
The Board-approved budget to 31 May 2026, with a further year added to 31 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 these consolidated interim financial statements. The Directors are
confident that the Group has adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing these interim financial statements.
3. Accounting policies
The accounting policies used in preparing these interim financial statements
are the same as those set out and used in preparing the Group's audited
financial statements for the year ended 31 May 2025.
Principal risks and uncertainties
As with any business, Springfield Properties PLC faces a number of risks and
uncertainties in the course of its day-to-day operations.
The principal risks and uncertainties facing the Group are outlined within its
latest annual financial statements for the year ended 31 May 2025. The
Directors have reviewed these risks and uncertainties, which remain relevant
for both the six months to 30 November 2025 and the full financial year to 31
May 2026. The Group continues to manage and mitigate these where relevant.
Exceptional items
Exceptional items are those material items which, by virtue of their size or
incidence, are presented separately in the consolidated 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, costs relating to changes in share capital structure
and restructuring costs.
4. Segmental analysis
A segment is a distinguishable component of the Group's activities from which
it may earn revenues and incur expenses, whose operating results are regularly
reviewed by the Group's chief operational decision makers to make decisions
about the allocation of resources and assessment of performance and about
which discrete financial information is available.
In identifying its operating segments, management generally follows the
Group's service lines that represent the main products and services provided
by the Group. The Directors believe that the Group operates in one segment:
· Housing building activity
As the Group operates solely in the United Kingdom, segment reporting by
geographical region is not required.
Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024 Audited
Year to 31 May 2025
Revenue £000 £000 £000
Private residential properties 65,373 72,068 155,776
Affordable housing 25,800 20,431 49,380
Contracting 3,618 6,012 10,976
Land sales 9,823 5,065 60,507
Other 3,375 2,064 3,918
Total Revenue 107,989 105,640 280,557
17,060 18,738 52,122
Gross Profit
Administrative expenses (11,559) (12,437) (27,609)
Exceptional items (350) (307) (1,032)
Other operating income 109 122 711
Finance income 406 67 361
Finance expense (1,964) (2,655) (5,534)
Profit before tax 3,702 3,528 19,019
Taxation (860) (832) (4,923)
Profit for the period 2,842 2,696 14,096
5. Exceptional items
Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024 Audited
Year to 31 May 2025
£000 £000 £000
Legal fees 119 - 500
Redundancy costs 231 307 532
Exceptional items 350 307 1,032
6. Taxation
The results for the six months to 30 November 2025 include a tax charge of
23.2% on profit before tax (30 November 2024: 23.6%), representing the best
estimate of the average annual effective tax rate expected for the full year,
applied to the pre-tax income of the six-month period. The tax charge for the
year ended 31 May 2025 was 25.9%.
7. Earnings per share
The calculation of the basic (and diluted) earnings per share is based on the
following data:
Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024 Audited
Year to
31 May 2025
Earnings £000 £000 £000
Profit for the period attributable to owners of the company
2,842 2,696 14,096
Adjusted for the impact of tax adjusted exceptional costs in the year
262 230 945
Adjusted earnings 3,104 2,926 15,041
Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024 Audited
Year to 31 May 2025
Number of Shares
Weighted average number of ordinary shares for the purpose of basic earnings
per share
119,042,405 118,753,540 118,839,353
Effect of dilutive potential ordinary shares: share options
6,631,638 5,301,265 6,082,522
Weighted average number of ordinary shares for the purpose of diluted earnings 125,674,043 124,054,805 124,921,875
per share
Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024 Audited
Year to 31 May 2025
Earnings per ordinary share
Basic earnings per share 2.39p 2.27p 11.86p
Diluted earnings per share 2.26p 2.17p 11.28p
Adjusted earnings per ordinary share (1)
Basic earnings per share 2.61p 2.46p 12.66p
Diluted earnings per share 2.47p 2.36p 12.04p
(1) Adjusted earnings is presented as an additional performance measure and
is stated before exceptional items and is used in adjusted EPS calculation.
8. Dividends
Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024 Audited
Year to 31 May 2025
£000 £000 £000
Final dividend - y/e 31 May 2024 - 1,188 1,188
Final dividend - y/e 31 May 2025 2,381 - -
2,381 1,188 1,188
The final dividend declared for the year to 31 May 2025 was 2p per share
amounting to £2,380,848. This dividend was declared before 30 November 2025
and is included within current liabilities at 30 November 2025. The dividend
was paid in December 2025.
9. Share capital
The Company has one class of ordinary share which carries 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 - allotted, called up and fully paid Number of shares Share capital Share Premium
£000 £000
At 1 December 2024 118,830,396 148 78,744
Share issue 212,009 1 -
At 31 May 2025 and 30 November 2025 119,042,405 149 78,744
During the period, nil (30 November 2024: 161,272; 31 May 2025: 373,281)
shares were issued in satisfaction of share options exercised for a
consideration of £nil (30 November 2024: £202; 31 May 2025: £467).
10. Deferred consideration
As part of acquiring the business of Mactaggart & Mickel Group Limited,
there is a further £30,781,108 of deferred consideration payable. This is
payable quarterly in arrears as homes are sold over 5 years, commencing from
September 2023. The outstanding discounted amount payable at the period end
was £21,651,175 (30 November 2024: £22,284,727; 31 May 2025: £21,960,440).
Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024 Audited
Year to 31 May 2025
£000 £000 £000
Deferred consideration < 1 year 14,401 7,404 7,469
Deferred consideration > 1 year 7,250 14,881 14,491
21,651 22,285 21,960
11. Contingent consideration and contingent liabilities
As part of the purchase agreement of Dawn Homes Holdings Limited there is a
further £2,500,000 payable for an area of land if (i) the Group makes 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 provision of £2,000,000
based on 80% probability. The outstanding amount payable at the period end
included within Provisions is £2,000,000 (30 November 2024: £2,000,000; 31
May 2025: £2,000,000).
The remaining £500,000 has been treated as a contingent liability due to the
uncertainty over the future payment.
Contingent consideration Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024 Audited
Year to 31 May 2025
£000 £000 £000
Dawn Homes Holdings Limited 2,000 2,000 2,000
2,000 2,000 2,000
Contingent liabilities Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024 Audited
Year to 31 May 2025
£000 £000 £000
Dawn Homes Holdings Limited 500 500 500
500 500 500
12. 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.
Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024 Audited
Year to 31 May 2025
£000 £000 £000
Dilapidation provision 115 115 113
Maintenance provision 4,821 4,169 5,613
4,936 4,284 5,726
Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024 Audited
Year to 31 May 2025
£000 £000 £000
Provisions < 1 year 1,607 1,390 1,871
Provisions > 1 year 3,329 2,894 3,855
4,936 4,284 5,726
13. Transactions with related parties
Other related parties include transactions with a retirement scheme in which
the Directors are beneficiaries, and close family members of key management
personnel. During the period, dividends totalling £575k (30 November 2024:
£nil; 31 May 2025: £286k) were paid to key management personnel.
During the period, the Group entered into the following transactions with
related parties:
Sale of goods Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024 Audited
Year to 31 May 2025
£000 £000 £000
Bertha Park Limited ((1)) 3,712 6,131 11,258
Other entities which key management personnel have control, significant 10 27 64
influence or hold a material interest in
Key management personnel 5 2 13
Other related parties - 2 13
3,727 6,162 11,348
Sales to related parties represent those undertaken in the ordinary course of
business.
Purchase of goods Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024 Audited
Year to 31 May 2025
£000 £000 £000
Entities which key management personnel have control, significant influence or 11 10 16
hold a material interest in
Other related parties 1,511 2,506 2,518
1,522 2,516 2,534
Rent paid to Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024
Audited
Year to 31 May 2025
£000 £000 £000
Entities which key management personnel have control, significant influence or
hold a material interest in
93 93 187
Key management personnel - - -
Other related parties 53 55 103
146 148 290
Interest received from Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024
Audited
Year to 31 May 2025
£000 £000 £000
Bertha Park Limited ((1)) 63 63 125
63 63 125
The following amounts were outstanding at the reporting end date:
Amounts receivable Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024
Audited
Year to 31 May 2025
£000 £000 £000
Bertha Park Limited ((1)) 9,483 9,566 9,394
Entities which key management personnel have control, significant influence or
hold a material interest in
5 9 2
Key management personnel 4 1 4
Other related parties - - 2
9,492 9,576 9,402
Amounts payable Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024
Audited
Year to 31 May 2025
£000 £000 £000
Entities which key management personnel have control, significant influence or
hold a material interest in
19 37 -
Other related parties 1,431 2,377 2,928
1,450 2,414 2,928
Amounts owed to/from related parties are included within creditors and debtors
respectively at the period-end. No security has been provided on any balances.
Transactions between Group companies, which is a related party, have been
eliminated on consolidation and are not disclosed in this note.
((1) Bertha Park Limited, a company in which Sandy Adam and Innes Smith are
shareholders and directors)
14. Analysis of net debt
Unaudited Period to 30 November 2025 Unaudited Period to 30 November 2024 Audited
Year to 31 May 2025
£000 £000 £000
Cash in hand and bank 10,691 9,409 9,388
Bank borrowings - loan (49,884) (72,262) (29,931)
Bank borrowings - overdraft (359) - (351)
Net bank debt (39,552) (62,853) (20,894)
Lease (5,119) (5,178) (5,511)
Net debt (44,671) (68,031) (26,405)
Deferred consideration (21,651) (22,285) (21,960)
(66,322) (90,316) (48,365)
Reconciliation of net cashflow to movement in net debt is as follows:
At 30 November 2025
At 1 June 2025 New Leases Cashflow Fair Value
£000 £000 £000 £000 £000
Cash in hand and bank 9,388 - 1,303 - 10,691
Bank borrowings - loans (29,931) - (19,953) - (49,884)
Bank borrowings - overdraft (351) (359)
- (8) -
Net bank debt (20,894) - (18,658) - (39,552)
Lease (5,511) (454) 1,015 (169) (5,119)
Net debt (26,405) (454) (17,643) (169) (44,671)
Deferred consideration (21,960) - 309 - (21,651)
(48,365) (454) (17,334) (169) (66,322)
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Copyright 2019 Regulatory News Service, all rights reservedRecent news on Springfield Properties
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