Springfield Properties – heading North, AGM Update due, shares 111p, TP 159p

Mark Watson-Mitchell - 27.10.2025

‘Build Baby Build?’

Ministers have been warned that sales of new-build homes have sunk to lows not seen since the global financial crisis more than a decade and a half ago, despite that it could well be worth taking a look at this ‘recovery’ prospect.

This coming Wednesday, 29^th October, will see Springfield Properties (LON:SPR) announcing an AGM Trading Update which could outline further details of the prospects for its focus on the North.

The £132m-capitalised group, which is a leading housebuilder in Scotland focused on delivering private and affordable housing, is now pushing ahead with its new strategy to centre on the substantial opportunities in the North of Scotland driven by incoming energy security infrastructure and renewable development.

The Business

Established way back in the 1990’s, then floated on AIM in 2017, Springfield Properties is one of Scotland’s leading home builders, focused on delivering quality private and affordable housing.

The Company operates through six brands: Springfield Properties, Springfield Partnerships, Dawn Homes, Walker Group, Tulloch Homes and Mactaggart & Mickel Homes.

With developments in key markets across Scotland, each brand offers something to the local communities in which they are active.

Its villages are standalone developments that include infrastructure and neighbourhood amenities.

Each village is designed to deliver approximately 3,000 homes, primarily for private sale, but also include affordable, and at Bertha Park, private rented sector housing, with green space and community facilities.

Management Comment

On Tuesday, 16^th September, at the time of announcing the group’s 2025 results, Innes Smith, the group’s CEO stated that:

"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."

The Equity

There are some 118,873,637 shares in issue.

The largest holders are the Adam family, Chairman Sandy Adam (23.3%), James Adam (7.9%), Scott Adam (5.0%) and Gordon Adam (4.6%) of the equity.

Other large holders include BGF Investment Management (7.2%), Janus Henderson Investors UK (4.5%), and Brewin Dolphin (2.8%).

Analyst’s Views

Analyst Max Hayes, at Cavendish Capital Markets, has a Buy note out on the group, with a Target Price of 159p.

For the current year to end-May 2026 he looks for the group to report revenues of £243.8m (£280.6m), with adjusted pre-tax profits of £12.6m (£20.2m), earnings of 7.6p (12.1p), but paying an increased dividend of 3.0p (2.0p) per share.

For 2027 his estimate is for £220.3m sales, £1.4m profits, 8.0p earnings and a further boosted dividend of 4.5p per share.

Hayes considers that the 2028 year will see £204.3m in turnover, but with a substantially increased £19.2m profit, generating 11.5p in earnings, with a 4.7p dividend.

In My View

The group is expecting to counter the brakes on sales cycles by increasing its rental schemes.

Its push up North coincides with a massive spend by SSEN in the area, needing a big workforce and new homes for its projects.

Looking forward over the next two-to-three years, Springfield offers investors an attractive opportunity as it pulls it operations around.

With net assets of nearly 150p, its shares at 111p could well improve to around the 135p level well inside that timeframe.

(Profile 05.03.19 @ 114p set no Target Price)

(Profile 26.10.22 @ 92p set a Target Price of 120p)