SPRINGFIELD Properties, the Elgin-based housebuilder, says growth in private housing and affordable housing divisions has continued in the second half of the year.
The firm, which floated on the stock market in October 2017 and has since completed acquisitions across the Central Belt provided the information in a London Stock Exchange trading update for the year ended May 31, 2019, ahead of announcing its full year results on September 17.
It said its land bank will provide business activity for 18 years as it moved forward with developments “in almost all of the key geographies within Scotland”.
The company said that, as noted in the interim results announcement in February, Springfield delivered strong growth across its private housing and affordable housing divisions in the first half and this has been maintained through the second half of the year.
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This was despite the backdrop of the Brexit deadlock.
The firm said there had been an increase in completions, which has been supported by a strong Scottish housing market across both the private and affordable housing sectors.
It said its management target of improving gross margins has been successfully achieved “through strong sales rates and sustained prices combined with tight cost control”.
The company’s Springfield’s Village developments have “progressed well, with their appeal strengthening as they become increasingly established”.
The farthest advanced village, at Dykes of Gray near Dundee, saw 178 homes occupied at the end of May against 136 in November.
The first owners moved in at Bertha Park near Perth at the beginning of the second half and 34 homes were occupied by year-end.
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It said works on a new major road led by the local authority connecting the village directly to Perth have been completed and a new secondary school is due to open in August.
Also in private housing, sales started on three new developments during the second half of the year.
Springfield said in the affordable housing division the group also continued to make good progress.
For example, it said, under its local authority framework agreement for 10 developments, the group started the handover of homes at one of the developments, began construction at two developments, and secured development contracts for a further two of the sites.
Progress was also made by the affordable housing division at Bertha Park with the first 54 affordable homes reaching an advanced stage of construction in the second half of the year.
Springfield Properties also said in its statement: “The expanded land bank has secured activity for approximately 18 years and both of the group’s divisions continue to be supported by strong market drivers.
“Consequently, the board of directors remains confident that the group will continue to achieve sustained growth, in line with market expectations, and deliver shareholder value.” Further details will be provided in September."
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