SPRINGFIELD Properties, the independent Scottish housebuilder, has announced a big rise in full-year sales and profits amid tough trading conditions.
Springfield posted sales of £40 million for the year to the end of May, up from £34m in 2010 and lifted pre-tax profits to £2.5m from £1.8m – an improvement of about 38%.
During the year, Springfield handed over 350 completed homes to buyers.
Established in 1956, the Elgin-based company said it expects to achieve substantial sales growth during the present year following the £49m acquisition of Redrow’s Scottish sites in July as part of an ambitious expansion plan.
Springfield also said its “Springfield Choices” philosophy, which provides customers with a wide range of options to customise their home, differentiates its product and will strengthen sales in the central belt.
Sandy Adam, chairman of Springfield, said: “We are very pleased to have achieved these results in what continues to be a very challenging market for the house building industry as a whole. Harmonisation of Springfield with the Redrow business in Scotland is going well and overall the former Redrow sites are performing to expectations.”
Springfield is continuing to expand its land bank while remaining in the market for more acquisitions.
Mr Adam added: “Through prudent land buying we have been able to put more money into building a better quality home and still price competitively.
“The Redrow deal has allowed us to achieve some of our expansion plans but we remain in the market for further acquisitions should these have the right mix of quality sites, design, build and employees.”
During 2012, Springfield plans to roll out a new portfolio of homes with a strong corporate identity as new sites win planning consent.
Building affordable housing on contract to local authorities, registered social landlords and private investors is a big part of Springfield’s business. The company said it has built more than 700 affordable homes since 2002.
“Clearly we still face a very challenging environment with clients experiencing difficulties in securing mortgages,” Mr Adam stated. “The planning process can be cumbersome, though we are seeing welcome seeds of change with some councils recognising that a healthy house building industry stimulates the economy and removing unnecessary hurdles which hold up projects.
“However, our land bank is rapidly expanding and providing the platform for superb value for future customers and growth.”
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