Property & Construction
Springfield Properties plc
Analysts
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Company Description
Springfield, admitted to AIM in October 2017, is Scotland's only quoted housebuilder. It has a differentiated business model which focuses on two differing markets, both of which have high demand and, arguably, a lower risk profile: family housing and affordable housing (the latter provided both as part of planning requirements in the Private Housing division as well as in its own right in the Affordable Housing division). A cornerstone of Springfield's strategy is its distinctive 'village' communities, close to fast-growing cities, located in Dundee, Perth, Stirling, Livingston and Elgin. Springfield's growth was augmented by the acquisitions of Dawn Homes in 2018, in West Scotland, and Walker Group in 2019, around Edinburgh. The group also formed its first private rental sector partnership in 2021.
Investment Summary
We believe that economic and political dynamics are likely to support relatively strong growth in housebuilding volumes and prices in Scotland. House prices in Scotland are more affordable in relation to household incomes than in almost any other region of the UK's mainland, while the Scottish Government has pledged to invest in building affordable homes. In our view, Springfield benefits from a distinctive business model and we believe strategically important acquisitions and an innovative rental partnership over the past three years are supportive of a return to growth once the social and economic hurdles of Covid-19 normalise. The village developments, which can combine private sale, affordable and private rental housing, are a particularly attractive feature of the strategy, in our view.
Recent Content
Record result against inflationary backdrop
20/09/2022
Springfield Properties, Scotland’s only quoted housebuilder, has delivered record FY22 results despite supply chain pressures, with homes completed […]
Forecasts up after ‘pay-as-you-go’ acquisition
22/06/2022
We have raised our FY2023E and FY2024E PBT estimates for Scotland’s only quoted housebuilder by 5% and 10%, […]
FY guidance reiterated in HY results
22/02/2022
Scotland’s only quoted housebuilder, Springfield Properties, has reiterated its FY2022E guidance in its interim results, supporting our estimates […]
Earnings-enhancing deal lifts Highlands growth
01/12/2021
Scotland’s only quoted housebuilder, Springfield Properties, has acquired Highlands developer, Tulloch Homes, for an enterprise value of £56.4m […]
Progressive in conjunction with Mello Events, presents the management team of Springfield Properties
21/09/2021
Rebound in market pays dividends
14/09/2021
Scotland’s only quoted housebuilder has reported an 81% uplift to £18.5m in adjusted PBT for the full year […]
Debt continues to fall faster than forecast
01/07/2021
Scotland’s only quoted housebuilder has confirmed in today’s trading update its previously raised profit estimates for the year […]
“Excellent” H2 sales drive FY2021E upgrades
01/06/2021
We have raised our FY2021E PBT and EPS estimates by almost 20% and cut our net debt projections […]
H1 results point to ‘significant’ full year growth
23/02/2021
Scotland’s only quoted housebuilder has delivered a 43% jump in adj PBT for the six months to November, […]
Resurgent Scottish market fuels cash inflow
15/12/2020
Scotland’s only quoted housebuilder has issued a positive trading update for the six months to 30 November, highlighting […]
Company Management Team
Innes Smith
Chief Executive Officer
After graduating from Heriot Watt University in 1991, Innes qualified as a chartered accountant with KPMG before moving into industry as financial controller at SGL Technic, a subsidiary of RK Carbon Fibres (now called SGL Carbon Fibres Limited), a NASDAQ and Deutsche Bourse listed company. Innes was promoted to finance director at SGL Technic and after five years moved to Gael Force. Innes joined Springfield in 2005 as Finance Director and was appointed Chief Executive Officer in October 2012 after seven years with the Company. In his role as Chief Executive Officer Innes has grown the scale of the Springfield family of companies with annual revenue increasing from £53.5 million in 2011/2012 to £140 million in 2017/18. Innes was appointed to the board of Homes for Scotland in 2016.
Michelle Motion
Chief Finance Officer
Michelle joined Springfield as a Finance Director in 2013. Michelle has over 20 years experience of the property and construction industry. She has worked for Morrison Developments Limited, a subsidiary of AWG plc, and a FTSE 250 company, and the house building company Avant Group, previously known as Gladedale Group. Michelle graduated with a BA in Accounting and an MBA and is a qualified accountant from the Charted Institute of Management Accountants.
