Springfield Properties Share Discussion Threads

[paulo435] 06/9/2021 23:08

Article from last week, www.inverness-courier.co.uk/news/springfield-properties-to-ask-residents-for-views-on-650-hom-249456/

[trustman] 06/9/2021 20:26

Figures this month. Also good job on debt reduction.

[paulo435] 05/8/2021 21:20

Construction costs for new builds could be holding this price back at the moment, however on the other hand I see that Taylor Wimpey are stating the high selling prices in the housing market at the moment are meaning there’s still plenty fat to play with yet.

[dros1] 08/7/2021 12:46

Scotland and London top new build sales charts
hxxps://www.mortgageintroducer.com/scotland-and-london-top-new-build-sales-charts/

[paulo435] 01/7/2021 06:41

Nice trading update this morn.

[aldriglikvid] 14/6/2021 13:13

I'm looking at 30m PBT annually coming 3 years. This is too cheap.

[davebowler] 06/6/2021 13:54

SCSW tipped this yesterday.

[wad collector] 04/6/2021 22:41

That IC article looks like it has pushed up the price today. The author, Simon Thompson, does do a lot of buy tips and not many holds or don't buys though.

[spob] 02/6/2021 07:11

Springfield smashes earnings forecasts

Buoyant private housing demand and land sales to two national housebuilders.
Profits for 2020/21 financial year to be materially above market expectations.

A pre-close trading update from Springfield Properties (SPR: 168p), a housebuilder focused on developing a mix of private and affordable housing in Scotland, highlights why I selected the shares, at 135.6p, in my 2021 Bargain Shares Portfolio.

A strong rebound in build and sales activity in the first half of the 2020/21 financial has continued into the second half (to 31 May 2021), so much so that both revenue and profit from Springfield’s private housebuilding activities will exceed prior guidance that was already factoring in a material step change in profits.

True, the Scottish housing market is in rude health, as is the case with most regions in the UK, but Springfield is also attracting home buyers because its mid-sized Village community developments are close to fast-growing cities (Dundee, Perth, Stirling, Livingston and Elgin) and offer more spacious homes with gardens and green spaces. A lower entry price makes them highly affordable, too. In addition, Springfield has sold 200 plots to two major housebuilders across its Central Belt developments, a further indication of the strength of Scotland’s housing market.

Analyst Alastair Stewart of Progressive Equity Research has taken note, upgrading full-year pre-tax profit and earnings per share (EPS) estimates by almost 20 per cent to £18m and 14.7p, respectively, implying close to 80 per cent profit growth on 38 per cent higher revenue of £199m. The upgrade is split roughly 50:50 between the private housing division and land sales. Stewart has also slashed his net debt forecast from £42.5m to £25.2m, representing a 63 per cent year-on-year reduction, adding weight to forecasts which point to a hike in the annual dividend from 2p to 4.5p a share when the group releases results next month.

On this basis, the shares are rated on 11.5 times earnings for the year just ended and offer a dividend yield of 2.6 per cent, a rating that fails to factor in the strong likelihood of Springfield realising further value from its high-quality land bank. It is conservatively valued, too, as land and work in progress is in the books at £155m, or less than £10,000 per plot. Moreover, the 15,000-plot land bank equates to 20 years output, so underpinning another step change in pre-tax profits and net asset value (NAV) in the coming years as the hidden value in the land bank is released. Progressive Equity is factoring 33 per cent higher pre-tax profit of £23.9m in the 2022/23 financial year, and a closing NAV of 132p a share, implying the shares are rated on a lowly prospective price/earnings (PE) ratio of nine and 1.3 times NAV estimates.

A triple top chart break-out of the 165p to 170p resistance level looks on the cards and would set up a share price move to my upgraded 220p target price. Buy.

[alan@bj] 01/6/2021 06:05

Excellent trading update. Profit expected to be significantly ahead of market expectations.

[wad collector] 24/5/2021 20:58

Broker clarified it a listing error , their valuation data stream persistently misclassifies it as Non-AIM , apparently none of the commercial data feeds are 100% accurate.

[wad collector] 05/5/2021 20:26

Thanks for that , as you say , hard to see why it wouldn't , not got a main market or foreign listing , business is not an investment platform, but it is definitely showing up as not-BPR eligible on the broker portfolio. I assume it is their mistake but will post here what they say.

[value viper] 05/5/2021 08:36

Listed on AIM and a house builder - I see no reason it wouldn't qualify.Telford Homes of the past did (taken over now) so why wouldn't this ?Confident BPR on the stock.

[wad collector] 04/5/2021 22:26

Just noticed that this is showing up in my statement as no longer an AIM share ; but still seems listed as AIM on LSE . Category AMQ1 , I cannot find out what that means. Or more specifically , whether it still qualifies for IHT relief ? Anyone know? Thanks

[mnuttall69] 27/4/2021 11:55

Very strong update from Simon Thompson in the last hour on IC Investor Forum. Remains significantly undervalued and strong momentum to follow.

[dros1] 25/4/2021 10:20

The property market boom has seen demand for homes rise to the highest level in two decades and is in no danger of slowing down any time soon, according to Taylor Wimpey's head honcho.

Chief executive Pete Redfern believes the clamour for new housing will continue even if the Government ends the support for buyers which has turbo-charged house prices and purchases since last summer.

'I have more confidence than at any time in the last 20 years about underlying demand,' he said.

[dros1] 25/4/2021 10:08

Simon Thompson ftom IC
Interim results from Springfield Properties (SPR:155p), a housebuilder focused on developing a mix of private and affordable housing in Scotland, highlight why I included the shares in my 2021 Bargain Shares Portfolio. First half pre-tax profit surged 42 per cent on revenue up 18 per cent to £94m and net debt has more than halved to £33.2m since the 30 May 2020 financial year-end.

Chief executive Innes Smith says that Springfield is in “as good as a position as we have ever been.” In fact, the company is trading ahead of Progressive Equity Research’s full-year forecasts which point to revenue rising 23 per cent to £178m to deliver 48 per cent higher pre-tax profits of £15.1m and EPS of 12.3p. On this basis, expect a full-year dividend per share of 4.5p, a pay-out that is well covered by forecast free cash flow of 30p a share.

The housing market backdrop remains very positive. Demand for housing in Scotland continues to outstrip supply with R.I.C.S. reporting 8.6 per cent annual house price growth in the 12 months to 30 November 2020. Mortgage availability remains good and with interest rates on the floor, Springfield’s lower entry price homes remain affordable for first time buyers who can even tap a £25,000 interest free equity loan from the Scottish Government’s First Home Fund. In the first half, 311 private sales completed at an average selling price of £239,000 and 132 affordable homes at £148,000 per unit. Also, the Scottish Government have committed £787m to affordable housing delivery in the next fiscal year. Even the Covid-19 pandemic is playing into Springfield’s hands as more home purchasers are looking for the type of affordable housing in green spaces that Springfield provides.

It’s worth noting that the company has entered a strategic partnership with private rental sector (PRS) housing specialist Sigma Capital Group (SGM) to provide 75 PRS homes at Springfield’s Bertha Park Village scheme near Perth. Springfield has three active Village schemes (7,000 homes) under development and a further two schemes which have potential to deliver 5,542 homes (Livingston and Stirling). There is obvious scope to scale up the partnership with Sigma.

The company’s share price has risen by over 10 per cent since I suggested buying and it’s reasonable to expect the re-rating to continue. A forward PE ratio of 10 for the 2021/22 financial year still represents a 13 per cent discount to listed peers even though the company could easily outperform the 26 per cent growth embedded in analysts’ 2021/22 EPS forecasts. Worth noting too that £1m of the forecast £4.5m growth in pre-tax profit in the 2021/22 financial year is covered by annualised costs savings made in the current year, and long lead times (six to nine months) on home sales offers strong revenue visibility to support forecasts.

There is even hidden value in the company’s balance sheet. Springfield’s 15,029-plot land bank has a gross development value of £3.1bn and stretches out 15 years at current build rates, but land and work in progress is carried in the accounts at only £155m. The reported price-to-book value of 1.5 times is far closer to parity if land is marked to market value. Buy.

[dros1] 13/4/2021 11:25

quite a lot directors selling lately . wonder why

[alan@bj] 03/3/2021 09:07

Ex-dividend tomorrow though.

[paulo435] 02/3/2021 17:15

If UK govt extends stamp duty holiday in the budget tomorrow (as expected) then I would expect to see a slight climb here in anticipation of Scotland following suit and helping to buoy up the housing market

[paulo435] 28/2/2021 18:53

Thanks for clarifying guys. I guess we need to put it into perspective, as you say GN, they are still substantial holders and it’s all relative to their overall position. Everyone needs cash at some point and as they say never put all your eggs in one basket. The point that they were snapped up so quickly/pre arranged still shows the market that big investors are interested. I’d be more worried if they didn’t have that interest.

[gn100] 28/2/2021 18:40

That's correct - no money comes to the Company from this. The concern is that two senior members of the Company possibly don't see value in the Company at the moment and/or have found a better use for their money. The other side of the coin is that their remaining shares - a considerable amount - are locked in for 6 months. Hopefully the market will take this in its stride Monday morning.

[jonut] 28/2/2021 17:47

It's a placing of shares for instis by 2 board members, Paulo, so not a funding for the company coffers.

[paulo435] 28/2/2021 14:43

Seen now, hmmm, all done and dusted within the hour. However long term it should be seen as a positive move I would think for us - big investor seeing value and pumping their coin in. Depends what’s done with the funding of course but an investment of this scale isn’t a bad thing