Springfield Properties expects soaring revenues to propel profits

Housebuilder Springfield Properties on Monday announced that it expected to achieve a significant increase in profits for the second half.

The AIM-traded company said it expects profit before tax to be roughly in line with market expectations, up 43% over the previous year, while revenues are expected to surpass expectations, growing approximately 27%.

Springfield’s private and affordable housing divisions both yielded revenue growth, with private housing accounting for 73% of total revenue.

Under its private housing division Springfield has submitted a planning application for a 3,000-home site at Durieshill, Stirling, which represented a key milestone as all of the village sites are now in the planning permission process, under construction or have commenced sales.

“The better-than-expected sales growth was due to the accelerated completion of the sites that the company had acquired from Redrow in 2011, and the profit growth reflects the margin associated with the Redrow sites being not as high as with the other Springfield sites,” Springfield said in a statemen.

The final remaining Redrow plot is expected to reach completion in July.

The company also expanded its private land bank with to £20.1m acquisition of the issued share capital of DHomes 2014 Holdings Limited, with integration continuing as planned and DHomes continuing to trade as Dawn Homes.

At 1104 BST, Springfield Properties’ shares were up 0.77% at 131.00p.