Property & Construction Daily

The Property & Construction Daily provides a sector-specific comment from leading analyst Alastair Stewart. His daily perspective provides a round-up of market statements, news, economics and views from the property and construction sectors.

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February 21, 2023

Springfield and Safestore Holdings | SPR, SAFE

Company research

Springfield Properties (SPR, 88p, £104m mkt cap) – SPR is a client of Progressive

Scotland’s only quoted housebuilder. H1 (Nov) results. Rev +85%, £162m; adj PBT +3%, £6.6m; stat PBT -5%, £5.9m; adj EPS -8%, 4.68p; interim div, 0p (H1 22, 1.5p); pre-IFRS 16 net bank debt, £67.8m (£39.7m), following acquisitions of Mactaggart & Mickel Group and Tulloch Homes; net assets, £144m (£112m).

Guidance: “The Group is confident that it will be able to manage the inflationary pressures and report profit for the full year to 31 May 2023 in line with market expectations”. Link to Progressive Equity Research note, Guidance maintained as buyers return:

“Springfield has maintained FY23E guidance for adjusted PBT in today’s half-year results. Scotland’s only quoted housebuilder was ahead of larger UK peers in outlining a more prudent outlook in December but now reports a recovery in buyer activity since the new year, although the Affordable Housing and Contracting businesses continue to face headwinds due to Scottish Government policies. In order to concentrate on debt reduction, Springfield has temporarily suspended the interim dividend for FY23E, but we maintain our FY24E dividend and cut our net debt estimate for next year”

Company news

Safestore Holdings (SAFE, 1,060p, £2,306m)

UK-focused self-storage group, with stores in Paris, Barcelona and Netherlands. Q1 (Jan) trading update.

Guidance: “The business has demonstrated its inherent resilience in recent times and we look to the future with confidence. The first quarter’s trading performance has provided us with a solid base for the rest of the financial year and we anticipate that the business delivers adj diluted EPRA EPS for 2022/23 in line with the consensus of analysts’ forecasts”. Rev +8.4%, £55.7m; closing occupancy, 77.6% (Q1 22, 80.8%); ave storage rate +2.0%, £30.42.

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