Presentation by the management team of Springfield – 27/09/2022

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.

Panelists: CEO Innes Smith and CFO Michelle Motion

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

1. Could you comment further on the outlook following the Scottish Government's freeze on rents and the resulting reduced PBT forecasts.

2. Including the land cost, what is your average cost of build across your brands? What is the range of average build costs across the brands?

3. Net debt is forecast to rise to £46m (pre IFRS16). How does the company view the possibility of further acquisitions in light of sharply increasing interest rates and would you consider issuing equity with the rating of the share price at a relatively modest level?

4. How much were Sigma and Springfield planning on raising rent annually in the PRS business, before the Scottish government's freeze on rent?

5. What type of foreign currency risk do you run with respect to your sourcing?

6. Is there a possibility of an undershoot in the full year to FY23 and could FY24 be upgraded above what was originally expected, or are there capacity constraints either on your side, with planning, or with customers' budgets?

7. Is there price advantage in your village developments compared with identical houses in non-village developments?

8. If lumber is down 30%, how are the other main raw materials fairing? How much labour inflation is their in the business at the moment with staff coming under pressure at home due to rising costs?

9. Is the RCF a syndicated facility and is the margin 2.5% over base rate?

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