Scottish housebuilder, Springfield Properties, has seen its pre-tax profit increase significantly due to a number of land sales despite completions falling over the year.
For the year to 31 May 2025, the housebuilder saw pre-tax profit rise 96% to £19million in 2025 from £9.7million in 2024. Springfield’s revenue also increased, rising 5.3% to £280.6million.
Land sales played a key role in the developer’s improved profit, with an agreement with Barratt Redrow for 2,480 plots of undeveloped land across six sites in Scotland, for a fee of £64.2million.
Springfield said that the sale to Barratt Redrow had also helped the group reduce its bank debt to £20.9million from £39.9million the previous year. The reduced debt would allow progress with its new strategy of targeting developments in the north of Scotland, where it had highlighted substantial opportunities related to renewable energy infrastructure. Springfield said that it was at an “advanced stage” of discussions with infrastructure providers to meet their housing requirements.
Despite the increase in profit, Springfield saw its total completions fall year-on-year, from 878 to 799. The housebuilder said that private housing rates were “stable” and on a similar trajectory to the second half of 2024.
During the period, private housing revenue fell by 15.6% to £155.8million, while affordable housing revenue increased 5.1% to £49.4million and contract housing revenue rose by 120%, from £5million to £11million.
Springfield said that it had noticed a “lengthening of the sales cycle” over the year due to a more cautious approach from buyers, which it said had impacted private completions and resulted in a lower order book year-on-year.
Innes Smith, chief executive officer of Springfield Properties, 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.”
