But housebuilder’s profit set to be lower than previous year
Scottish housebuilder Springfield said it expects to increase its annual revenue by nearly a third to around £330m.
It said its turnover was boosted by the acquisitions of housebuilders Tulloch Homes and Mactaggart & Mickel Homes.
Springfield said its profit for the year will be in line with its expectations but lower than the £18.4m pre-tax profit reported last year due to “significant build cost inflation, particularly on fixed-price contracts in affordable housing, affecting margins across the group”.
The housebuilder said that as of 31 May it had a landbank of 16,300 plots of which more than half had planning permission.
>>See also: Redrow to shut two divisions as it launches restructure
>>See also: Watkin Jones issues profit warning as CEO resigns
Innes Smith, chief executive of Springfield Properties, said: “We remain cautious about the near-term outlook, particularly given the softening in demand following the increase in rates by the Bank of England to 5%. We are closely monitoring the economy and buyer behaviour in both the housing and land market and carefully managing our activities to limit our exposure in the slower sales environment.”
No comments yet