The information contained within this announcement (this "Announcement") is deemed by the company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of the domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 (as amended) ("UK MAR").  Upon the publication of this Announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

17 December 2025

Springfield Properties plc

("Springfield", the "Company" or the "Group")

Agreement with SSEN Transmission and Trading Update

Springfield signs agreement with energy infrastructure provider to deliver c. 300 homes

Trading for H1 2026 in line with management's expectations

Springfield Properties plc (AIM: SPR), a leading housebuilder in Scotland focused on delivering private and affordable housing, announces that it has signed an initial agreement with Scottish Hydro Electric Transmission plc (t/a "SSEN Transmission") to commence the delivery of almost 300 homes in the North of Scotland as part of SSEN Transmission's investment programme to upgrade the national electricity transmission grid and to help deliver UK energy security.

The Group also provides an update on trading for the six months ended 30 November 2025 ("H1 2026") and is pleased to report that trading for H1 2026 was in line with management's expectations.

Agreement with SSEN Transmission

Springfield is pleased to announce that it has signed an initial agreement with SSEN Transmission towards delivering 293 homes, at six sites across Highland, Moray and Aberdeenshire, with the homes to be leased for an initial four-year period to accommodate workers involved in SSEN Transmission's energy upgrade projects.

Under the initial agreement, the Group will provide the enabling works to prepare selected sites for the main construction and will receive payment from SSEN Transmission to fund these site-opening costs. It is intended that the parties will, in the near term, then enter a further agreement for the build and lease of the housing. It is expected that homes will be delivered by Springfield on a phased basis over the next three years and will be leased for an initial four-year period.

At the conclusion of the lease period, the Group will have multiple attractive options, including making the housing available for private housing sales or sales to private rented sector providers as well as sales to affordable housing providers to secure a lasting legacy for the communities. 

The Group is continuing to discuss further agreements with SSEN Transmission and other major infrastructure providers to deliver new housing on a similar basis to support the upgrade of crucial energy infrastructure in the North of Scotland.   

Trading update

Trading for the six months ended 30 November 2025 was in line with management's expectations. The Group expects to report revenue for H1 2026 of c. £106.0m (H1 2025: £105.6m) and net bank debt at 30 November 2025 of c. £40.0m (30 November 2024: £62.9m).

In private housing, there was an increase in average selling price during the first half, which partly mitigated the expected reduction in completions. While the market remained subdued, in line with the wider housebuilding industry, the Group anticipates an upturn in consumer confidence following the recent publication of the UK Budget, with the announced measures being less severe than had been widely predicted. As a result, and along with normal seasonality, the Group expects to deliver higher private housing revenue in the second half of the year.

The Group performed well in affordable housing, with good growth in the number of completions. The Group has continued to secure new contracts with gross margins remaining strong. The Group now has almost all of forecast FY 2026 revenue for its affordable housing activity delivered or contracted and the remainder under negotiation. Accordingly, the Board remains confident of achieving revenue growth in affordable housing for the full year.

The Group continues to make selective land sales and interest in its large, high-quality land bank remains strong.

The Group will provide further detail in its interim results announcement, which is expected to be in February 2026.

Innes Smith, CEO of Springfield, said:

"We are delighted to have signed our first agreement to provide housing to support the delivery of crucial infrastructure upgrades across the North of Scotland. The build and multi-year lease of housing will allow us to receive income over the course of the lease as well as having additional attractive options at the conclusion of the lease period. We are continuing to discuss further projects with SSEN Transmission and other infrastructure providers, and we remain very excited about the substantial opportunities in the North of Scotland.

"Turning to our trading, we are pleased to have performed in line with our expectations for the first half, including a significant reduction in bank debt compared with this time last year. In private housing, we are hopeful that an increase in consumer confidence following the publication of the UK Budget, along with expected interest rate cuts, will provide a boost to homebuying in the 2026. We are continuing to perform well in affordable housing, with almost all of our FY 2026 forecast revenue already delivered or contracted. Accordingly, we remain on track to deliver results for the full year in line with market expectations and look forward to reporting on our progress as each of these initiatives progresses."

Commenting on the agreement, Rob McDonald, Managing Director of SSEN Transmission, added: "This agreement with Springfield represents a milestone in our housing legacy commitment. It's more than just bricks and mortar - it's about creating long-lasting value for communities, providing much-needed homes, and supporting the workforce delivering vital grid upgrades. Alongside our other housing agreements, we are proud to be working in partnership with Springfield to deliver homes that will benefit local people for decades to come."

Photography to accompany this announcement can be downloaded from: https://www.thespringfieldgroup.co.uk/press-photography

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Equity Development produces freely available research on Springfield Properties plc, including financial forecasts. This is available to view and download here: https://www.thespringfieldgroup.co.uk/news/updates-and-analyst-reports