Presentation by the management team of Springfield – 02/03/2022

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, the Walker Group in 2019, around Edinburgh and most recently Tulloch Homes around Inverness. The group also formed its first private rental sector partnership in 2021.

Panelists: Innes Smith (CEO), Michelle Motion (CFO) and Martin Egan (COO)

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

1. How would you describe the approach of the national housebuilders in Scotland and how do you compare to their offerings?

2. Do you have any plans to extend factory production of your timber frame units and/or construct more of the home offsite?

3. How are you finding the debt markets, and if you were to look for another (big) deal, are you confident that you could borrow more?

4. For Private Housing, what is your average sales value per square feet and your cost of construction per square feet?

5. How’s the market faring versus England, in terms of demand and prices and which are your healthier regional markets?

6. Have all the acquisitions bedded in as successfully as each other in integrating and have there been any hitches you can learn from? What do the ‘sellers’ see in Springfield that they don’t get from other potential acquirers?

7. Would you ever branch out of Scotland?

8. In terms of the land bank, do you expect to find more "larger" assets, or will you need to accept slightly smaller sites in future. Do smaller sites tend to produce slightly lower margins?

9. Please provide some colour on regional developments.

10. What are your operating margins?

11. Does the change in the "benchmark" on the affordable housing side have any impact on your margins, or does this flow through to selling prices also?

12. What is your relationship with Sigma Capital/Sigma PRS?

13. Are most of your constructions timber framed?

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