The Group expects to report revenue for full year 2020/21 of approximately £215m – a year-on-year growth of 49% and its highest total ever.
CEO Innes Smith said: “This has been an excellent year for Springfield. We have achieved our highest-ever annual revenue – exceeding £200m for the first time – based on significant growth in both our private and affordable housing. We have substantially reduced our net debt position, demonstrating our ability to generate cash, and our strategic land sales towards the end of the year reflect our capacity to realise value from our large, high-quality land bank.”
Net debt was reduced to approximately £21m at 31st May compared with £71m at the same point in 2020.
Smith added: “A key driver of our growth has been the greater popularity of the spacious homes that we provide, with private gardens and easy access to surrounding greenspace, particularly at our Village developments. At the same time, there continues to be a chronic undersupply of housing of all tenures across Scotland. Thanks to the strength of our offer and of our partnerships, which will now include the delivery of homes for the private rented sector, we are exceptionally well-positioned to help meet this housing demand and provide great places for people to live, building quality homes and creating sustainable communities.
“At Springfield, sustainability has always been at our core and we are proud of our Group’s performance in relation to ‘people’ and the ‘planet’ as much as we are ‘profit’. Following the identification of a board member to lead on ESG [environmental and social governance], we look forward to sharing how we intend to formalise our approach to sustainability with our full results in September”.
In affordable housing, the group delivered a substantial increase in revenue and completions in the second half of the year over the first half, representing significant growth for the full year over 2019/20. The group also signed contracts for, and began work on, multiple new affordable developments that are due to be delivered in the current year. This progress is supported by the continued commitment of the Scottish government to the delivery of affordable housing, with over £3.4bn earmarked for affordable housing funding through to March 2026.