It is certainly bold for a business to upgrade its forecasts by as much ten per cent in its first set of public accounts, but that is precisely what Springfield Properties did yesterday.
It was not without good reason. Double-digit revenue and profit growth for the interim period will be turbo-charged in the second half by forward sales.
Analysts are taking the same view, with N+1 Singer upgrading pre-tax profit forecasts by 5.7 per cent to £9.6m for the full year.
While the top line numbers impress, the company’s commitment to affordable housing is worthy of further examination.
A total of 96 affordable homes were completed in the period, which may not seem many, but this is up 40 per cent on last year.
And planning consent was secured for 518 affordable plots, including a 230 affordable home development in Turiff in Aberdeenshire.
The land bank for affordable homes increased to 3,710 over 36 sites and proposals worth up to £80m are planned over the next three years.
With the Scottish Government putting huge pressure on itself with a target to build 50,000 affordable homes by 2021, each and every completion counts.
That is why the Scottish Government recently overturning two planning refusals for Springfield affordable housing, something the group noted “reflects the intent of the Government to reach its targets”.
With the government helping clear the path upon which to build, committing to affordable housing makes good sense on a business societal.
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