17 February 2026                                                                                                                                 

Springfield Properties plc

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

Interim Results

Springfield Properties (AIM: SPR), a leading housebuilder in Scotland focused on delivering private and affordable housing, announces its interim results for the six months ended 30 November 2025.

Financial Highlights

 * Adjusted to exclude exceptional costs of £0.3m (H1 2025: £0.3m) (See the Financial Review for further detail)

·    Solid results, with an increase in profit before tax and substantial reduction in net bank debt compared with the same point in the previous year, give the Board confidence in delivering results for the full year in line with market expectations and to continue with the Group's dividend policy

Operational Highlights

·    Initial agreement signed, post period, 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

·    Total completions of 316 (H1 2025: 361)

·    On track to deliver revenue growth in private housing for the full year based on orderbook and usual seasonality

·    Strong performance in affordable housing with almost all of FY 2026 forecast revenue for affordable housing already delivered or contracted

·    Large, high-quality land bank of 7,305 owned and contracted plots, 63% of which have planning permission, and 6,293 strategic plots

o  Includes 4,362 owned and contracted plots and 4,652 strategic plots in the North of Scotland in close proximity to key work areas, demonstrating the Group's strong position in the region

Innes Smith, Chief Executive Officer of Springfield Properties, said: "We are pleased to have performed in line with our expectations for the first half, with an increase in profit and a significant reduction in bank debt compared with the same time last year. We also achieved an important strategic milestone with the signing, post period, of our first agreement to provide housing to support the delivery of crucial infrastructure upgrades across the North of Scotland. We are continuing to discuss further projects with infrastructure providers, and we remain very excited about the substantial opportunities in the region.

"Looking to the full year, we continue to expect to deliver underlying growth when excluding the exceptional contribution of land sales to FY 2025. We are hopeful that an increase in consumer confidence following the publication of the UK Budget, along with interest rate cuts, will provide a boost to homebuying. 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."

Enquiries

Analyst Research

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

Analyst Presentation

Innes Smith, CEO, and Iain Logan, CFO, will be hosting a presentation for analysts at 9.00am GMT today at the offices of Cavendish, 1 Bartholomew Close, London, EC1A 7BL. To register to attend, please contact: [email protected]

Results Investor Webinar

Management will be presenting to shareholders, via a webinar hosted by Equity Development, at 9.00am GMT on Wednesday 18 February 2026. Investors can register their attendance for the webinar here:  

https://www.equitydevelopment.co.uk/news-and-events/springfield-properties-interim-results-investor-presentation-18-february-2026

Operational Review

Springfield achieved an increase in revenue to £108.0m (H1 2025: £105.6m) as strong growth in affordable housing and land sales offset the expected reduction in private housing. Total completions were 316 (H1 2025: 361), which reflects the impact of market conditions on private housing and the Group's strategic refocus on future opportunities in the North of Scotland. The Group is pleased to note that there has been improvement in consumer confidence since the period end and, alongside usual seasonality and a very strong orderbook in affordable housing, Springfield remains on track to deliver higher revenue in the second half of the year. In addition, the Group made excellent progress during the period in implementing its new strategy to capitalise on the substantial opportunities in the North of Scotland, which are being driven by the requirement for housing to support the delivery of the incoming energy security infrastructure and renewable development.

Agreement with SSEN Transmission

During the first half of the year, the Group advanced its discussions with infrastructure providers for Springfield to satisfy their housing requirements in the North of Scotland. This culminated in the Group signing, post period, an initial agreement with SSEN Transmission towards delivering 293 homes at six sites across the Highlands, Moray and Aberdeenshire.

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, 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. The homes will accommodate workers involved in SSEN Transmission's energy upgrade projects that will contribute to providing the UK with energy security.

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 major infrastructure providers to deliver new housing on a similar basis to support the upgrade of crucial energy infrastructure in the North of Scotland.  

Land Bank

As at 30 November 2025, the Group had a total of 3,865 owned plots (31 May 2025: 3,912), of which 75% had planning permission (31 May 2025: 72%), and 3,440 contracted plots (31 May 2025: 3,367), of which 50% had planning permission (31 May 2025: 58%). This includes 4,362 owned and contracted plots (31 May 2025: 4,030) across 62 sites (31 May 2025: 50) in the North of Scotland.

In addition, Springfield has established a significant strategic land bank with options over 6,293 plots as at 30 November 2025, of which 4,652 plots are in the North of Scotland. In FY 2025, the Group submitted land for consideration in response to the Highland Council's call for new sites to be allocated for housing development in their forthcoming Local Development Plan. The Group is continuing to strengthen its position in the North of Scotland by increasingly securing options over this land.

The total owned and contracted land bank equated to nine years of activity and had a gross development value at 30 November 2025 of £1.9bn (31 May 2025: £1.8bn).

At period-end, the Group was active on 44 developments (31 May 2025: 40) and during the period seven developments were completed and 11 new developments became active.

During the period, the Group completed profitable land sales of £9.8m (H1 2025: £5.1m). This primarily represents the sale of the final site under the Group's agreement with Barratt Redrow plc ("Barratt") that was entered in FY 2025. Springfield continues to make selective land sales and interest in its large, high-quality land bank remains strong.

Private Housing

In private housing, prices remained resilient across with Group's brands with an increase in average selling price ("ASP") to £344k (H1 2025: £313k) due to housing mix. This served to partly mitigate the reduction, as expected, in completions to 190 (H1 2025: 230). The reservation rate was slightly lower than the first half of the prior year due to a lengthening of the sales cycle in line with the wider housebuilding industry. This led to increased time and cost to complete sites, which impacted gross margin in private housing during the period. 

The Group is pleased to note that, following the publication of the UK Budget at the end of November 2025 and with the announced measures being less severe than had been widely predicted, consumer confidence has begun to improve. As a result, and along with normal seasonality, the Group continues to expect to deliver higher revenue in the second half of the year, and an increase in revenue for FY 2026 compared with FY 2025.

As at 30 November 2025, Springfield was active on 27 private housing developments (31 May 2025: 25), with five active developments added during the period and three developments completed. In total, as at 30 November 2025, the owned private housing land bank consisted of 2,570 plots (31 May 2025: 2,598 plots), of which 71% had planning permission (31 May 2025: 68%).

Affordable Housing

The Group performed well in affordable housing, with growth in the number of completions to 113 (H1 2025: 95). The ASP in affordable housing increased to £228k (H1 2025: £215k). The Group has continued to secure new contracts and now has almost all of forecast FY 2026 revenue for its affordable housing activity delivered or contracted. Accordingly, the Board remains confident of achieving revenue growth in affordable housing for the full year.

The number of active affordable housing developments was 16 at 30 November 2025 (31 May 2025: 14), with six active developments added and four active developments completed during the period. As at 30 November 2025, the total owned affordable housing land bank consisted of 1,295 plots (31 May 2025: 1,314), of which 83% had planning permission (31 May 2025: 82%).

Contract Housing

In contract housing, Springfield provides development services to third party private organisations and receives revenue based on costs incurred plus fixed markup. To date, this has largely consisted of services provided to Bertha Park. At 30 November 2025, the contract housing land bank with planning consent consisted of 487 plots (31 May 2025: 500). The 13 homes completed during the period (H1 2025: 36) were private homes at Bertha Park (H1 2025: 19 private homes and 17 affordable homes completed at Bertha Park).

Financial Review

For the six months ended 30 November 2025, revenue increased to £108.0m (H1 2025: £105.6m). Private housing remained the largest contributor to Group revenue, accounting for 60.5% of total sales (H1 2025: 68.2%). Affordable housing contributed 23.9% (H1 2025: 19.3%) and contract housing accounted for 3.4% (H1 2025: 5.7%). Land sales accounted for 9.1% (H1 2025: 4.8%) and other revenue for 3.1% (H1 2025: 2.0%).

Gross margin was 15.8% (H1 2025: 17.7%). This primarily reflects a reduction in gross margin in private housing, which was impacted by the lengthening of the sales cycle and time to complete sites, and the exceptional gross margin of the land sales in the first half of the prior year. As a result, gross profit for the period was £17.1m (H1 2025: £18.7m).

Administrative expenses, excluding exceptional items, were reduced to £11.6m (H1 2025: £12.4m) and accounted for 10.7% of revenue (H1 2025: 11.7%). This reflects a continued focus on carefully managing costs across the Group and restructuring in line with the Group's new strategy.

Exceptional items were £0.3m (H1 2025: £0.3m), which mainly relates to restructuring costs.

Operating profit was £5.3m (H1 2025: £6.1m) and, excluding exceptional items, it was £5.6m (H1 2025: £6.4m). The reduction was due to the lower gross profit.

Net finance costs were reduced to £1.6m (H1 2025: £2.6m) as a result of lower bank interest payments primarily due to the significant reduction in bank debt, but also lower interest rates.

Statutory profit before tax increased to £3.7m (H1 2025: £3.5m) and adjusted profit before tax and exceptional items to £4.1m (H1 2025: £3.8m). This reflects the reduction in operating profit being offset by the lower net finance costs.

Basic earnings per share (excluding exceptional items) increased to 2.61 pence (H1 2025: 2.46 pence). Statutory basic earnings per share increased to 2.39 pence (H1 2025: 2.27 pence).

Net bank debt at 30 November 2025 was £39.6m (31 May 2025: £20.9m; 30 November 2024: £62.9m). The increase over the six-month period reflects the normal seasonality of the working capital cycle. The reduction compared with same point of the prior year is due the strategic actions undertaken in FY 2025 to reduce the Group's debt.

Springfield secured a new  revolving credit facility ("RCF") for three years until August 2028 with a facility limit of £77.5m reducing in 12 months to £47.5m alongside an overdraft facility of £2.5m for 12 months until August 2026. The reducing facility levels align with the strategy of reducing bank debt whilst still providing the Group with headroom to capitalise on opportunities that arise.

Customer Satisfaction

The Group achieved an excellent customer satisfaction score of 97% from customers surveyed during the first half of the year - maintaining the high performance of the same period of the prior year (H1 2025: 97%). The Group continued to deliver a quality service for customers under the principles of the New Homes Quality Code (the "Code"), resulting in another 100% scoring in an on-site audit. The Group has been preparing for the launch of the new version of the Code in March 2026, including the rollout of training for all customer facing employees post period. During the period, the Group was successfully re-certified for ISO 9001 (Quality Management).

Environment and People - ESG

The Group's new strategy for housing delivery in the North of Scotland will contribute to the plans for the decarbonisation of the nation, helping to ensure future UK energy security. More new homes are required to accommodate the growing renewables workforce and ensure people can move into the Highlands, Moray and Aberdeenshire to deliver this change.

The Group's homes are designed to support sustainable living. They are energy efficient with high levels of insulation and heating powered by air-source technology. The Group is also proud to have manufactured timber kits for its homes off-site for decades. This approach enhances efficiency, consistency and quality across its developments.

The new strategy has reinforced the Group's commitment to skills development as it prepares for the anticipated growth in the North of Scotland. Springfield is collaborating with skills agencies to attract new people into the region and increase training opportunities to maximise home-grown talent. Twenty-five new apprentices were recruited across the Group between June-September 2025.

Alongside attracting new talent, a continued priority for the Group is fostering employee wellbeing. Investment in development has continued with over 5% of staff undertaking formal qualifications as at period end. A variety of benefits are in place to retain talent, including initiatives such as gym membership, private healthcare and employee assistance schemes.

During the period, the Group recertified in ISO 4001 (Environmental System) and ISO 45001 (Occupational Health & Safety Management System).

Markets

The scale of demand for new homes continues to underpin the fundamentals of the Group's business. Across Scotland, housing need is at an all-time high, acknowledged by the Scottish Government with a declaration of a housing emergency in 2024 and the announcement, in January 2026, of plans to create a national housing agency to help boost homebuilding in Scotland. A record level of investment of £926m has been committed for affordable housing supply for the Scottish Government financial year commencing in April 2026. This is to help deliver on the long-standing commitment to provide 110,000 affordable homes by 2032. Measures have also been taken to move forward with a legislative exemption for any rent caps introduced in local markets for Build to Rent homes, which is expected to reestablish a supportive climate for investment into Private Rented Sector housing supply in Scotland. 

While lower levels of confidence in the economy has subdued the UK's private housing market in recent years, the reduced construction by the industry continues to compound housing need and demand. The levels of certainty provided by the UK Budget announcement in November 2025 and the subsequent reduction in interest rates in December have had a positive impact on consumer confidence.

There continues to be greater affordability in Scotland compared with the UK as a whole based on the ratio of average house price to annual income. Indicators in Scotland remain positive with Zoopla predicting, in January 2026, that the best prospects in the UK for house price growth and sales in 2026 are in Scotland.

The mortgage lending community is keen to support buyers of energy-efficient, new-build homes and changes to mortgage regulation to ease accessibility together with a competitive product range from lenders will help service the demand. Aspirations for the type of homes that the Group offers remain high. The Group builds quality, spacious, energy-efficient homes in highly-desirable areas with generous private gardens and plenty of surrounding greenspace.

The unprecedented level of economic growth occurring in the North of Scotland is presenting unique opportunities for the Group. Job creation and the resultant inward migration will increase the need for new homes. To accommodate the projected growth, Local Authorities have begun engaging on new-style Local Development Plans with The Highland Council being the first to set a target by committing to double current housing output by delivering 24,000 new homes in the next decade.

Outlook

The Group continues to expect to achieve growth for FY 2026 when excluding the exceptional contribution from the land sales to Barratt, in line with market expectations. This reflects a year-on-year increase in revenue in both private and affordable housing. In private housing, with consumer confidence having improved since period end as well as usual seasonality, the Group remains confident in delivering higher revenue in the second half compared with the first half of the year and year-on-year growth. In affordable housing, almost all of forecast FY 2026 revenue is already delivered or contracted.

Looking further ahead, Springfield remains very excited about the significant prospects in the North of Scotland. The signing of its first agreement, post period, with SSEN Transmission marks an important milestone towards capitalising on the substantial opportunities in the region. The build and multi-year lease of housing would allow the Group to receive regular income over the course of the lease as well as having further options for monetisation at its conclusion. This represents an excellent opportunity for Springfield that will allow the Group to maximise the value of its land holdings in this area of high demand.

Accordingly, the Board continues to look to the future with great confidence.