Springfield Properties has reported an increase in private and affordable housing revenue, despite an overall fall in both pre-tax profit and revenue.
Covering the year ending 31 May 2026, the Scottish housebuilder saw a combined revenue of £219.3million from private and affordable housing, up from £205.2million the previous year.
However, Springfield saw overall revenue fall 13.2% from £280.6million to £243.7million, while pre-tax profit slipped from £19million to £11.9million, a fall of 37.4%. This was largely due to high levels of land sales the housebuilder recorded in the previous year as part of the Group’s debt reduction strategy.
As a result of the strategy, Springfield successfully eliminated its net bank debt, reporting a net cash position of £1.2million in 2026. The Group says that its strengthened financial position enables it to now develop sites in Central Scotland to generate greater value, rather than pursue their sale.
Over the year, Springfield says that it executed on its strategy to capitalise on opportunities in the North of Scotland, and has signed an initial agreement to deliver almost 300 homes across six sites in the region, which will be used to provide accommodation for workers involved in upgrading the national electricity grid.
Springfield confirmed that it intends to start a share buyback programme, and has proposed a dividend of 3p a share, up 50% from the previous year.
Innes Smith, Chief Executive Officer of Springfield Properties, said: “This has been an excellent year for Springfield. We achieved a key strategic priority of eliminating our net bank debt, which was significantly ahead of market expectations. Our underlying business remained resilient, with year-on-year growth in both private and affordable housing. We made significant progress in capitalising on the substantial opportunities in the North of Scotland, which are being driven by the incoming energy security infrastructure and renewable development. Building on our initial agreement to deliver almost 300 homes across six sites for a major infrastructure provider, we have been engaging with our partner as well as progressing works, and we will be signing the main contract for the first site imminently.”
“Looking to the current year, our private housing reservation rate has been steady and we have continued to secure new contracts on favourable terms in affordable housing. Our significantly strengthened balance sheet has enabled us both to increase our dividend and launch a share buyback programme. We are disappointed that the market continues to undervalue housebuilders, with Springfield’s share price remaining materially disconnected from our view of the underlying value of the business, reflecting neither the strength of our balance sheet, the quality of our land holdings or the opportunities available to us in the North of Scotland. We therefore see the buyback as a compelling opportunity to create value for shareholders while demonstrating the Board’s confidence in Springfield’s future prospects. With strong operational momentum and significant opportunities ahead, we look to the future with confidence.”
