Springfield says high interest rates and fragile consumer confidence behind falls

Springfield Properties has reported a sharp drop in profit, turnover and completions.

The Scottish housebuilder, in its results for the year to 31 May, posted revenue of £267m, down 20% on the £332m reported the previous year.

Pre-tax profit fell 37% to £9.7m over the same period, which it said was in line with expectations.

Springfield Properties

The number of homes Springfield completed last year fell below the 900 mark from more than 1,300 last time

Springfield said: “Demand in the year was impacted by high interest rates, mortgage affordability, the cost-of-living crisis and reduced homebuyer confidence.” But the firm added that it has seen “initial signs of recovery” with reservation rates up year-on-year.

Springfield completed 878 homes in the year, down from 1,301 the previous year, in line with expectations. The group again cited subdued homebuyer confidence and reduced affordable housing activity.

Springfield cut its net bank debt to £39m, ahead of a target of £55m set earlier in the year.

The housebuilder said its total owned land bank stood at 5,593 plots, 88% of which have planning permission and a strategic land bank equating to 31,471 plots.

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