Springfield Properties hits new highs as confidence recovers
It’s something of a rarity to find a housebuilding company whose shares are hitting new 12-month highs but regional developer Springfield Properties (SPR:AIM) is flying high after its first-half trading update.
The firm, which builds new homes in evocative locations such as Elgin and Inverness rather than focusing on Edinburgh and Glasgow, said it had seen increasing homebuyer confidence since the turn of the year with net private reservations running at double its (admittedly conservative) forecasts of late.
Meanwhile, build-cost inflation continues to fall and is down to just 2.5%, which is easily recoverable in selling prices.
With one of the largest land banks in Scotland, 86% of which has planning permission, and over 3,000 acres of strategic land in reserve, the firm is well placed for this recovery in buyer demand.
Having cut the dividend due to the downturn in sales in 2022 and 2023, the firm aims to restart payments once its debt is down to reasonable levels.
From £93 million of net debt at the end of November last year, the company is targeting £55 million by the end of May and £40 million by May 2025.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
Issue contents
Exchange-Traded Funds
Feature
- Understand whether Super Micro Computer is an investment flop or technology great
- Do markets actually care who wins the US election in November?
- Construct an ISA portfolio: Put the building blocks in place for investment success
- Fear of missing out has supplanted fears of a market sell-off
- Find out how London Tunnels plans to create one of the biggest tourist attractions in the capital
Great Ideas
Money Matters
News
- Springfield Properties hits new highs as confidence recovers
- Focusrite shares nosedive after company warns on sales and earnings
- Scottish Mortgage tackles NAV discount with £1 billion buyback while Witan invites new managers
- Nvidia unveils new ‘superchip’ at its first conference for four years
- Could litigation headaches lead to a breakup of Reckitt Benckiser?