Presentation by the management team of Springfield Properties – 03/10/2023

Panelists: Innes Smith, Chief Executive Officer and Iain Logan, Chief Financial Officer

Springfield, admitted to AIM in October 2017, is Scotland’s only quoted housebuilder. It has a differentiated business model that focuses on two differing markets, both of which have high demand and, arguably, a lower risk profile: housing for private sale 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 focus on ‘Village’ communities with up to 3,000 homes, which are set in a rural context but close to fast-growing cities, designed with everything a community needs to thrive. Across six respected housing brands, Springfield, Partnerships, Dawn, Walker, Tulloch and Mactaggart & Mickel, the group works in close co-operation with local councils and other stakeholders to deliver high-quality housing in key locations in Scotland.

 

Springfield - Full Year 23 Results Presentation

Watch the full presentation below or navigate to the segments and questions that interest you the most.

1. Your market outlook statement at your results seemed to be a little more downbeat than most of your larger peers (who seemed more non-committal). Do you just naturally prefer to be ‘glass half full’?

2. Has the pick-up in oil prospects been a significant benefit to the housing market in and around Aberdeen? There are areas in Aberdeen that look quite interesting to me (like Portlethen and Stonehaven) and these are places that you look at. What's the prospect of some growth there?

3. What's your feeling about the NE of Scotland for the next year? When the market picks up will you be a major beneficiary?

4. You seem to offer a broader range of tenures than most of the larger UK house builders and are specifically targeting land sales. Do you see any similarities with Vistry's new strategy, and what are the key differences?

5. With regards to PRS have you seen any revival in investment intentions from Sigma or any other institutional funders?

6. I'm sure you can't give any specific details on your land sales discussions, but how would you characterize the appetite amongst potential buyers?

7. Can you provide some detail about covenants on debt and the likely buyers of the land holdings that you wish to sell?

8. Could you give some detail on the £4m of cost cutting? You mentioned four strategic purchases. Are any of them regrettable in hindsight? i.e. would you have structured anything differently, paid a different price etc? And what is the outlook for this type of activity in the future - in say 12-24 months from now, when you've geared?

9. Why would house builders buy land from Springfield when they already have lots of plots already?

10. Is the underlying concept of affordable housing likely to remain a particularly difficult area when we are seeing sharply higher interest rates, higher inflation and moments of political instability?

11. Why don't you do a small fundraising to reduce the potential cash squeeze in 2024 and 2025?

12. As a non Scott I'm slightly less familiar with your politics. Could you give me a quick summary of the Scottish parliament's broad housing and planning policies before, during, and after the pandemic, and talk about how it's affected your markets?

Related Content