REG - Springfield Props. - Trading Update

Springfield PropertiesAnnouncement

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RNS Number : 9180G  Springfield Properties PLC  04 June 2026

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

 

4 June 2026

 

Springfield Properties plc

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

 

Trading Update

Elimination of bank debt - significantly ahead of market expectations

 

Springfield Properties plc (AIM: SPR), a leading housebuilder in Scotland,
provides the following update on trading for the year ended 31 May 2026 ("FY
2026") ahead of announcing its full year results, which is expected to be in
September 2026.

 

The Group is pleased to announce that, as at 31 May 2026, it had removed its
bank debt and had a net bank cash position of approximately £1m. This is
significantly ahead of market expectations of year-end net bank debt of £10m
and is a substantial reduction from the Group's highest reported net bank debt
of £93.4m in November 2023. This represents a successful execution of the
Group's strategy to reduce its debt and reflects its sustained focus on cost
discipline and working capital control. It also offers Springfield greater
financial flexibility to capitalise on investment opportunities in FY 2027 and
FY 2028.

 

The Group expects to report revenue and adjusted profit before tax in line
with market expectations, with total revenue for FY 2026 of approximately
£245m. In private housing, there was strong growth in the second half of the
year compared with the first half reflecting normal seasonality, an increase
in average selling price and the changing housing mix, resulting in
year-on-year growth in private housing revenue. In affordable housing, revenue
grew year-on-year, as expected, as the Group delivered against its strong
order book and continued to secure new contracts.

 

The Group made excellent progress during the year 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. Most notably, the Group signed an initial agreement with 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. The initial funding received from SSEN
under this agreement has enabled construction to progress on multiple sites.
Agreements for the build and lease contracts are at an advanced stage of
negotiation for the first phase of the housing.

 

Springfield continued to strengthen its land bank in the North of Scotland
with the promotion of additional sites through the ambitious Local Development
Plans that are emerging. In addition, the Highland Council's Masterplan
Consent Areas are accelerating the planning process for 800 plots across two
sites in key locations.

 

The Board remains very excited about Springfield's prospects in the North of
Scotland. Forecasts for expected housing demand in the region are substantial,
which the Group is well-placed to meet thanks to its strong land bank and
established position as a housebuilder of scale in the area. The Group is
receiving increasing interest from major infrastructure providers who are
looking for solutions to their worker accommodation requirements. The Group
continues to monitor developments and currently expects house price inflation
from this increased demand to mitigate cost pressures associated with the
crisis in the Middle East. The conflict highlights the importance of UK energy
security and the focus on achieving the transition to renewables underway in
the North of Scotland.

 

Alongside this, the fundamentals of the housing market in Scotland remain
strong. There is a critical undersupply of housing across all tenures and the
newly formed Scottish Government has reinforced housing as a priority with
£4.9bn of investment for affordable housing and £10,000 interest-free shared
equity loans to First Time Buyers over the Parliamentary term.

 

Innes Smith, Chief Executive Officer of Springfield Properties, said: "We are
delighted to have achieved a key strategic priority in eliminating bank debt
at year end - which is significantly ahead of market expectations and compares
with our peak reported net bank debt over £93m in November 2023. This
achievement provides further evidence of disciplined cost control and
strengthens our ability to capitalise on the substantial growth opportunities
in the North of Scotland.

 

"We have made excellent progress in delivering on our new strategy to focus on
the North of Scotland, which is experiencing unprecedented demand for housing
in response to major investment in energy security and renewable
infrastructure. We have already reached an important milestone with our
agreement with SSEN Transmission and we continue to see substantial
opportunity in the region for the years to come.

 

"Our underlying business remains strong, with the achievement of year-on-year
growth in private and affordable housing. We also continue to hold significant
landholdings in areas of high demand. Accordingly, we continue to believe
Springfield is well positioned for the future and we 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)

 

 

 

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