LONDON (ShareCast) - (Sharecast News) - Scottish housebuilder Springfield Properties warned on Wednesday that its full-year profits looked set to fall by as much 44% as a result of Covid-19 lockdowns halting construction work.
Springfield said pre-tax profits were now projected to come in at around £9m for the year ended 31 May, a marked reduction on the £16m recorded in the prior year.

The AIM-listed group said the drop was due to Covid-19 lockdowns across the UK as it was unable to complete the delivery of homes scheduled to take place in April and May - which accounted for 30% of annual revenue. As a result, Springfield said the majority of private completions anticipated for the fourth quarter had now been postponed into the current trading year.

Revenues were expected to fall roughly 25% to £144m but gross margins were said to have improved.

Springfield said it had recommenced operations on-site from 15 June and that construction activity had also now resumed on every site, along with all sales offices reopening on 29 June.

Chief executive Innes Smith said: "After several months of closure, we are delighted to have reopened to a record week of reservations - reflecting pent up demand and increased desirability for the type of private housing Springfield offers.

"Multiple industry reports have commented on the shifting interests of homeowners as a result of lockdown, with people wanting larger homes, with gardens, located within commuting distance of cities, which is the kind of developments we create. At the same time, the shortage of affordable housing in Scotland has become even more acute and, thanks to the strength of our partnerships, we are well-positioned to help provide new homes to meet this demand."

As of 0905 BST, Springfield shares were up 3.74% at 97p.

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