Springfield Properties has reported record revenue and profits, backed by the delivery of more than 1,000 homes in a year for the first time.
The Scottish housebuilder's results for the year ended 31 May 2022 also noted a final dividend of 4.70p - making a total dividend for the year of 6.20p - compared with 5.75p last year.
Within the private housing division, 712 homes were completed (up from 559 in 2021), reflecting the acquisition of Tulloch Homes and organic growth.
Cost and supply chain pressures have been managed, with gross margin maintained when taking into account regional and housing-type mix.
A planning application has also been submitted for a development of up to 1,000 homes in the Edinburgh commuter belt.
Springfield also built 405 affordable homes during the period (up from 363 the previous year), delivering against its highest ever contracted order book.
Revenue and margin on affordable-only sites was however impacted by cost increases relating to three subcontractors going out of business and the contribution from two fixed-price, long-term contracts that had been signed in early 2020.
Therefore, the group temporarily paused the signing of new long-term fixed price contracts until appropriate inflationary accommodations are introduced.
Within contract housing, where the group provides development services to third party private organisations, 125 homes were completed - up from 51 in 2021 - including its first private rented sector housing with Sigma Capital.
Planning approval was received for 255 plots and 1,558 plots with planning were received through the Tulloch Homes acquisition. The proportion of land bank with planning permission was 52.1% - marginally down from 52.4% last May.
The total land bank of 16,652 plots at year end was up from 15,281 in May 2021, however, with gross development value of £3.5bn.
Innes Smith, chief executive of Springfield Properties, commented: “I am pleased at how we managed the material and supply chain pressures facing our industry so that, while not immune, we were able to mitigate much of the impact.
“In keeping with our strategy, we significantly expanded our business with the acquisitions of Tulloch Homes and, post period, the Scottish housebuilding business of Mactaggart & Mickel – two high quality housebuilders with land in areas of strategic importance.
“We entered the 2023 financial year delivering against a strong order book in private housing, reflecting sustained demand for the type of homes that we provide and the expansion of our business.
“While the challenging economic backdrop will impact our affordable and PRS housing activity in the short term, as we await decisions from the Scottish Government, we are on track to deliver another year of revenue and profit growth overall.”
He added: “The fundamentals of the housing market in Scotland remain strong with high demand for homes across all tenures coupled with a national shortage in housing supply. As a result, the Board continues to look to the future with confidence and to delivering sustainable value for all of our stakeholders.”
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