Chairman says maiden results vindicate company’s decision to float

Executive chairman Sandy Adam, whose grandfather, Wifrid Adam, founded the business, said Springfield’s maiden annual results as a listed company vindicated the decision to float in October 2017.

The initial public offering saw the Moray firm join the City’s Alternative Investment Market (AIM), while the £25 million raised gave it firepower for accelerated growth.

“It has transformed the company,” Mr Adam said, adding: “Springfield entered the new financial year in a stronger position than at the same point of the previous year.

“With an established pipeline, strengthened foundations and the longterm drivers showing no sign of abating, the board is confident of delivering strong growth for full year 2018/19 in line with market expectations.”

The flotation valued the business at £87million and was part of plans to ramp up construction to 1,000 homes annually.

Springfield’s IPO cash and a further £15m raised by a share placement earlier this year are funding the development of new villages around Scotland, including one for 2,500 homes and two schools on the outskirts of Elgin, where the firm is headquartered.

John Moore, senior investment manager in the Scottish operations of wealth manager Brewin Dolphin, said: “Springfield Properties has used its IPO as a foundation for future growth potential.

“These results show what may be the first signs of this on many levels – a 27% increase in revenue to £140.7 million, operating profit is up 37% to £10.7m and debt has been cut by more than half to £15.3m.

“What differentiates this housebuilder from many others listed on the stock market is its significant social housing element, which offers the potential to provide growth that is much less sensitive to traditional influences in the sector, such as rising interest rates and secondhand house prices.”