Springfield Properties (LON:SPR) is emerging strongly from a challenging year for the housebuilding sector, with debt substantially reduced, private reservations and affordable order book improving and an increasingly confident medium-term outlook.
FY24 results are in line with expectations and ahead of the original targets for the year. The dividend has been reinstated (1.0p final) earlier than forecast, in a sign of confidence. Management’s principal objective at the beginning of the year was to reduce bank debt to <£60m and this was comfortably achieved (£39.9m reported).
The partnership with Barratt at Durieshill is a reminder of the long-term value in the landbank, which also underpins genuine excitement in the prospects for the North of Scotland, a region that will benefit from a sustained and significant increase in investment over the coming years.
Whilst the shares have performed well over the past year, given the confident tone of today’s outlook statement, the Group’s low valuation relative to peers and the exciting opportunity emerging in North Scotland (not yet reflected in forecasts), we reiterate our Fair Value / share estimate of 140p.
Link to report: https://www.equitydevelopment....
