Robust results at Springfield after float

L Housebuilder makes strides in both private and affordable homes

Construction had also begun at Bertha Park, Perth, and planning approval had been received for 870 homes in Elgin. In all, Moray-based Springfield is to build five new “village” housing developments in north and central Scotland in a 15 to 20-year project. It is part of the company’s strategic aim to double its size every five years.

Springfield’s gross profit margin rose 90 basis points to 15.4 per cent and Smith said there was room for improvement.

He added that he was relatively sanguine on the impact of a so-called Generation Rent on the group and the wider housing sector.

“About 25 per cent of our customers are first-time buyers, 30 per cent are aspirational, perhaps moving up [the ladder] and 30 per cent are families getting bigger,” he said.

“I don’t think there’s anything permanent in the housing industry. Things change quite quickly.”

Broker N+1 Singer said: “Springfield’smaideninterims confirm a positive H1 trading period and good progress across both the private and affordable housing divisions.

“The outlook statement strikes a confident tone, reflecting the improved visibility that is a feature of the Scottish housing model.”