Scottish housebuilder aiming to cut debt through land sales as it re-enters affordable housing market
Springfield Properties said it is on track to meet its targets for the year despite a drop in completions.
In a trading update this morning, the 拢330m-turnover Scottish housebuilder added it was 鈥渃onfident of meeting market expectation鈥� for the year to 30 November. It has previously said it is expecting adjusted pre-tax profit of 拢10m to 拢14m for the year.
Springfield also said it would cut its net bank debt to 拢55m by 31 May, down from 拢61.8m at the same period last year. It is looking to sell land to help achieve this and is hoping to raise 拢9.3m through two sales it has begun negotiations on.
But it warned that reservation rates 鈥渞emained stable but subdued鈥� throughout the period while completions have dropped by an unspecified amount.
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It admitted: 鈥淒emand compared with the prior year period continued to be impacted by high interest rates, mortgage affordability and reduced homebuyer confidence.鈥�
It said that since re-entering the affordable housebuilding market in May the group has signed affordable housing contracts totalling 拢24m.
Springfield expects to publish its half-year results in February.
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