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Published on: December 1, 2021

Earnings-enhancing deal lifts Highlands growth

Scotland’s only quoted housebuilder, Springfield Properties, has acquired Highlands developer, Tulloch Homes, for an enterprise value of £56.4m – a premium of only 6% over pro-forma NAV. The group states that it will be earnings enhancing in the current financial year, and significantly so in FY2023E. We have upgraded our estimates accordingly. Tulloch strengthens Springfield’s presence in the economically vibrant region around Inverness. The consideration is to be part-funded by a £22m placing, with a £13m deferred element effectively funded by Tulloch’s strong cashflow.

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