SHARES in Springfield Properties soared by 14 per cent in early trading as it said revenue and profit for the current year will be “significantly ahead of market expectations”.
The Elgin-based AIM-listed housebuilder providing private and affordable housing said the position was driven by strong sales and the “material” disposal of land to two national housebuilders.
The company also said that spacious properties with gardens and green space being more sought-after boosted its revenues.
It said that strong build and sales activity in the first half had been sustained throughout the year with the group continuing to experience high demand across the business.
Springfield Properties said in a statement: “In particular, excellent sales of the group's private housing have been driven by the increased desirability for the type of housing Springfield offers: more spacious homes, with gardens and green space and, especially with the group's village developments, that have local amenities within walking distance. As a result, the group expects revenue and profit to be ahead of market expectations, reflecting significant year-on-year revenue growth."
READ MORE: Housebuilder hikes profits amid 'pent-up' demand
The group sold land totalling about 200 plots across two of its large developments in the Central Belt to two national housebuilders at the end of the year.
“These strategic sales, which are material in nature, reflect the group's continued focus on realising value from its large, high-quality land bank and strengthening the group's balance sheet through cash generation,” it said. “As a result, the group expects to report revenue and profit for full year 2020/21 significantly ahead of market expectations, reflecting significant year-on-year growth.”
It has also “continued to substantially reduce net debt throughout the year” and will provide a further update on trading in July.
In February Springfield reported a 42.9% increase in adjusted pre-tax profits to £9 million for the six months ended November 30, with turnover growing by 18.3% to £94.4m as the firm benefited from "pent-up" demand seen across the sector.
At that stage a total of 443 homes were completed, up from 438.
Last year it hailed a record number of reservations for a single week after reopening sales offices.
Shares closed up 10%, or 15p, at 165p.
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