Springfield Properties Share Discussion Threads

[trustman] 18/9/2018 12:26

Good results, attractive dividend.
I suspect margins artificially depressed by Redrow rump sales-where they shared proceeds but didn't pay capital as far as I recall.
I expect to see margins lift this year.
Can you please remind me what spooked Jimarilo?
Thanks,T

[jonwig] 18/9/2018 06:55

Their annual results are out today:



Their gross margin is 15.7%, yet larger UK housebuilders seem to have much larger GMs (CRST, poorly-rated over 30%). Is it the affordable housing which depresses them? But that has the advantage of being more stable income.

[warranty] 22/8/2018 17:59

Maybe I've misread it then jonwig, many thanks for putting me right. I don't hold yet but it is certainly an interesting company. I particularly like the fact that the senior management hold most of the shares so have a definite vested interest and though there is little information so far, earnings and profits seem to be going in the right direction. With a prospective yield around 5% and little appreciable risk that I can see, it may be a sound investment for the long term for my ISA. Thanks again for your help.

[jonwig] 20/8/2018 17:56

@ warranty - they haven't yet produced annual results: do you have the right company?

In the recent acquisition document (May) they say "... it intends to pay a final dividend per Ordinary Share in respect of the year ending 31 May 2018 in line with previous expectations."

For information, I sold after the exchange here with Jimarilo. Unfortunately he removed the posts and foolishly I didn't keep a record.

[warranty] 20/8/2018 17:32

Interesting and growing company this but does anyone know why they didn't choose to pay a final dividend? I can find confirmation from the annual report that they didn't intend to but can't find any reason why?

[ntv] 16/7/2018 10:22

the answer is never buy a new house

[jimarilo] 16/7/2018 07:22

someone didn't like these posts, so I have removed them

[jonwig] 16/7/2018 07:05

@ Jimarilo - OK, thanks.

When researching property companies, I tend to look for web comments about housebuilders. Some are full of negatives (Keepmoat maybe the worst, but Persimmon figures, too). I found relatively few for SPR, and didn't find this one of course (as it's dated post-IPO).

Basically, what I'm saying is that these are sector-wide risks and an occasional bad experience shouldn't negate the investment story. Actually, one potential problem with SPR did cause me to pause when investing: asbestos at Milton of Campsie. I went ahead despite this.

[jonwig] 16/7/2018 06:37

Trading update:



Not often we get ones which are wall-to-wall good news!

@ Jimarilo - well, thank you for that, but a web search suggests you're the only one in possession of this knowledge. Can you provide corraborating evidence? After all there is lots of 'fake news' around.
Presumably that's your own picture.

[jonwig] 01/6/2018 07:05

The new NED appears to be a specialist in business expansion. Appropriate, I think.

[jonwig] 22/5/2018 16:18

Here's a turn-up - funds controlled by George Soros (SFM UK, etc.) have taken 6,545,189 shares (6.79p).

[m1das_touch] 02/5/2018 19:12

Haha - living up to the name is a challenge tho!

Quiet board here...think this will do really well once it gets on the radars of more private investors and institutions. Potential for significant growth and growing income so should attract both traders and investors.

[jonwig] 02/5/2018 08:57

Well done - good username there! yes, it's unusual to be able to get in ahead of a mark-up.

[m1das_touch] 02/5/2018 08:37

Topped up on that news...fortunately before the price ticked up :)

[jonwig] 02/5/2018 08:07

Placing and acquisition of Dawn Homes:



Placing price (£15m) of 120p shows confidence. Earnings enhancing and current trading strong. Looks great to me.

Did the news leak a few days ago?

[jonwig] 21/3/2018 15:15

@ johnsoho - yes, I think so. I wish I'd bought more when I did!

Key things: a top class management team and Scots not English housing policy, where they are much involved in affordable. There's a niggling asbestos-related claim which I mentioned earlier, but decided to buy nevertheless.

[johnsoho] 21/3/2018 13:53

I think these look to be good value at £1.20 per share so have purchased my first tranche.....hopefully it’s onwards and upwards from here!

[jonwig] 20/2/2018 07:54

H1 reults. Outlook:

"Looking ahead, we have entered the second half of our financial year with a strong order book of contracted revenues and, together with sustained market drivers including a supportive Scottish Government policy, Springfield is poised to play a significant part in the delivery of the many new private and affordable homes needed across Scotland. As a result, the Company anticipates revenue and profit for full year 2017/18 to be 5-10% ahead of market expectations."

Previous expectations (Singer, Dec 2017) were for eps of 8.6p, so maybe 9.1p now, giving FY PER of 12x. Further eps growth pencilled in for 2019, 2020.

I see gross margins are higher in affordable than private, which I found surprising, but may be down to special factors.

[jonwig] 02/2/2018 07:08

"Springfield Properties (AIM: SPR), a leading housebuilder in Scotland offering private and affordable housing, will be announcing its interim results for the six months ended 30 November 2017 on Tuesday 20 February 2018."

[jonwig] 01/2/2018 12:59

The crackdown threats issued yesterday about undeveloped land banks should be irrelevant to Scotland, where housing policy is devolved. The fact that work is done on affordables in partnership with local councils is also a steadier.

[spob] 12/1/2018 00:54

Admission doc

[jonwig] 09/1/2018 10:55

After some dithering I bought a few this morning.

There's a warning in the prospectus which probably amounts to nothing but caused a bit of hesitation. Removal of asbestos, pp33-34, p109.