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 拢267m, down 20% on the 拢332m reported the previous year.
Pre-tax profit fell 37% to 拢9.7m over the same period, which it said was in line with expectations.
Springfield said: 鈥淒emand in the year was impacted by high interest rates, mortgage affordability, the cost-of-living crisis and reduced homebuyer confidence.鈥� But the firm added that it has seen 鈥渋nitial signs of recovery鈥� 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 拢39m, ahead of a target of 拢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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