SPRINGFIELD Properties has reiterated its expectation of delivering full-year revenue and profit growth ahead of market guidance, writes Scott Wright.
The Elgin-based housebuilder, which was valued at around at nearly £90 million when it floated on the stock exchange last year, said it expects to report an increase in profit before tax of 43 per cent for the year ended May 31, in line with the upgraded market consensus it noted in February. It said then that it anticipated revenue and profit for the full year 2017-18 to be five to 10 per cent ahead of market expectations.
Springfield expects revenue to be 27 per cent of last year and put its better than expected sales growth down to the accelerated completion of sites it inherited when it acquired Redrow in 2011. It noted that the anticipated profit growth reflects the margin associated with the Redrow homes being lower than on other Springfield sites.
The housebuilder returned to the acquisition trail shortly before its May year-end, when it paid £20.1m for Glasgow-based Dawn Homes. The deal triggered a multi-million-pound windfall for Dawn majority shareholder Alan Macdonald.
Springfield reported sales above £100m for the first time in the year ended May 31, 2017, up 22% to £111m. Profit before tax was booked at £6.7m for the period, up 31%.
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