Springfield Properties PLC Trading Update (3200S)
08 Luglio 2020 - 8:00AM
UK Regulatory
TIDMSPR
RNS Number : 3200S
Springfield Properties PLC
08 July 2020
8 July 2020
Springfield Properties plc
("Springfield" or the "Group")
Trading Update
Springfield Properties plc (AIM: SPR), a leading housebuilder in
Scotland offering private and affordable housing, provides the
following update on trading for the year ended 31 May 2020 and the
impact of COVID-19.
As previously announced, Springfield entered the second half of
2019/20 with a strong order book of contracted revenue for the
period to 31 May 2020 and was experiencing good growth across the
business prior to the COVID-19 outbreak. However, as a result of
the lockdown, Springfield was unable to complete the delivery of
homes scheduled to take place in April and May 2020, which for the
previous two years accounted for 30% of annual revenue. As a
consequence, the majority of private completions anticipated for Q4
2019/2020 were postponed into the new financial year.
Notwithstanding the lack of sales in the last two months of the
year, the Group was able to achieve the same level of revenue in
affordable housing as the prior year. Overall, the Group now
expects to report revenue for full year 2019/20 of approximately
GBP144m (2018/19: GBP190.8m). The Group is pleased to note that it
expects to report an improvement in gross margin for 2019/20 over
the prior year and profit before tax of at least GBP9m (2018/19:
GBP16.0m).
The Group recommenced operations on site from 15 June 2020 and
construction activity has now resumed on every site, along with all
sales offices reopening on 29 June 2020, with COVID-19 safe-working
protocols in place. The number of reservations received in the
first week following the reopening was the highest number of
reservations Springfield has ever recorded in a one-week period -
and substantially higher than normal for this time of year. The
Group has also commenced handing over homes that were nearing
completion prior to lockdown. As a result, the Group expects Q1
2020/21 sales to be significantly higher than the equivalent period
last year.
In addition to the recent reservations, Springfield's order book
of contracted revenue currently stands at over GBP110m. This
includes GBP44m of largely constructed private housing, much of
which was due to be handed over to clients in April and May 2020.
These homes are contracted under the Scottish missive system and
the Group has only had one cancellation since lockdown. The
affordable housing element consists of GBP66m from construction
contracts already underway.
Whilst the Group anticipates robust sales for Q1 2020/21, and is
experiencing a strong increase in demand, performance for the
remainder of the year is reliant upon operations remaining open
with no further COVID-19 disruption.
The Group has maintained a robust financial position throughout
the pandemic. Springfield has a total credit facility of GBP85m and
net debt at 7 July 2020 amounted to GBP69.4m. Of the total credit
facility, the GBP18m that was secured in April 2020 has been fully
drawn, but is not currently being utilised. With operations having
recommenced, the Group delivering against a strong order book for
near-term revenue as well as experiencing significant customer
demand, management anticipates a reduction in the net debt
position.
Innes Smith, CEO of Springfield, said: "Our priority has always
been - and remains - the health and safety of our workforce and
customers, and we have taken important measures to protect this.
Nonetheless, a fter several months of closure, we are delighted to
have reopened to a record week of reservations - reflecting pent up
demand and increased desirability for the type of private housing
Springfield offers. Multiple industry reports have commented on the
shifting interests of homeowners as a result of lockdown, with
people wanting larger homes, with gardens, located within commuting
distance of cities, which is the kind of developments we create. At
the same time, the shortage of affordable housing in Scotland has
become even more acute and, thanks to the strength of our
partnerships, we are well-positioned to help provide new homes to
meet this demand. As we now focus on delivering our strong order
book of contracted revenue, while also expanding our sales
pipeline, I would like to thank our workforce and customers for
their support during this time and we look forward to continuing to
provide great places for people to live."
The Group will provide further details at the time of its full
year results announcement, which is expected to be issued in
October 2020.
Enquiries
Springfield Properties
Sandy Adam, Chairman
Innes Smith, Chief Executive Officer +44 1343 552550
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N+1 Singer
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Shaun Dobson, James Moat (Corporate
Finance)
Rachel Hayes (Corporate Broking) +44 20 7496 3000
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Luther Pendragon
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Harry Chathli, Claire Norbury, Alexis
Gore, Joe Quinlan +44 20 7618 9100
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END
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