Springfield Properties says Scotland’s energy transition is set to fuel a new phase of growth for the Elgin-based housebuilder, as it positions itself at the heart of a surge in demand for homes linked to renewables and energy-security projects in the North.
Unveiling annual results to 31 May, the AIM-listed group reported revenue up 5.3% to £280.6million, with pre-tax profit almost doubling to £19million.
Operating profit climbed 42% to £24.2illion and net bank debt was cut by nearly half to £20.9million, helped by a £64.2million sale of 2,480 central-belt plots to Barratt Redrow.
Chief executive Innes Smith said: "I am pleased with what we achieved this year and how we have positioned ourselves for greater success going forward. We accelerated the reduction of our bank debt and delivered an increase in both profit and revenue, despite sales continuing to be impacted by subdued market conditions.
"We have made the decision to refocus our strategy to capitalise on the substantial opportunities in the North of Scotland driven by incoming energy security infrastructure and renewable development.
"We have already made excellent progress in implementing this new strategy and are now in advanced discussions with infrastructure providers whereby we expect to enter an agreement in the near term for the build and multi-year lease of housing. This would allow us to receive regular income over the course of the lease as well as having further options for monetisation at its conclusion.
"This reflects our ability to navigate the market and our agility to deliver innovative solutions to meet housing need while maximising the value of our land bank in this area of high demand. We are very excited about the prospects in the North of Scotland, in particular, and we continue to look to the future with great confidence."
The group has secured or submitted around 5,400 acres and plots in Highland locations close to planned wind, grid and hydrogen schemes, and has arranged new £77.5million banking facilities to fund expansion.
FTSE100
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