Growth for builder behind major Perth and Dundee projects

SPRINGFIELD: Firm has Bertha Park and Dykes of Gray developments

The housebuilder behind major housing developments in Perth and Dundee has reported another strong year of growth.

Scottish developer Springfield Properties is behind the Bertha Park development of 3,000 homes in Perth and Dykes of Gray on the outskirts of Dundee.

The firm’s full-year results for the year ending May 31 showed sales rose to £190.8 million from £140.7m in 2018, a rise of 36%.

Gross margin increased from 15.7% to 18% as pre-tax profits rose by £6.7m to £16.5m.

The completion of new homes increased from 770 in 2018 to 952 last year.

Executive chairman of Springfield Properties, Sandy Adam said: “We increased our revenue from both private and affordable housing and achieved significant improvement in gross margin.

“We expanded our geographic presence and scale and made great progress with our village developments, with the most advanced strengthening in appeal as they become increasingly established new communities.

“Throughout our history, Springfield’s strategies have been designed to secure growth and futureproof the business.

“We have been successful in achieving this in the past and this continues to be our focus for the future.”

The AIM-listed firm said it had made excellent progress on its village developments, with 212 homes occupied at year end across Dykes of Gray and Bertha Park.

The firm also noted the major new road link, with work led by Perth and Kinross Council to connect the Bertha Park site near Huntingtower to Perth.

The firm expanded its land bank to 15,938 plots at the year end, a rise from 12,476 a year ago, of which 28% have planning permission.

The gross development value of the land bank is put at £3.2 billion.

“With our strong land bank of nearly 16,000 plots, the progress that we’re making with our village developments and sustained market drivers, we are well positioned for continued growth,” Mr Adam added.

The firm’s private housing side brought in £143.3m of revenue, an increase of 41%, while the affordable housing side of the business produced revenues of a further £42.9m.

Springfield acquired Livingstonbased Walker Group in February and Glasgow-based Dawn Homes in May 2018, which chief executive Innes Smith said had “enhanced” the business.

He added: “With a great product, an excellent team and sustained demand for housing in Scotland, we have established a solid pipeline and remain on track to deliver continued growth in line with market expectations.”

Springfield shares rose 4p to close at 110p.

Springfield’s strategies have been designed to secure growth and future-proof the business SANDY ADAM, EXECUTIVE CHAIRMAN

Picture: Steve MacDougall.