Springfield Properties Share Discussion Threads

[nobull] 18/1/2022 14:23

Today's Telegraph
Questor share tip: lower prices and a different house-buying regime north of the border make Springfield Properties worth a look [at 152p]

By
Russ Mould
18 January 2022 • 5:00am

[wad collector] 14/1/2022 19:07

Simon Thompson tipped it this week in IC fwiw.
He doesn't mention the whole cladding problem however, and how some of the rumoured solutions might hit the sector. (Like reducing H2B or increasing the proposed Developers tax).

[gn100] 06/1/2022 16:44

Certainly it would be sound financial practice to take some money off the table but as a holder, I find that combined with a lacklustre share performance, the CEO steadily selling doesn't sit well with me, particularly when the other housebuilders are doing well. I also hold several of these and it's becoming obvious that the money I have in SPR would have been better invested in the others.

From memory, Simon Thompson had a target price of circa 220p when he wrote them up in June. I would be quite happy if we only got halfway to that from where we are now.

[rp19] 06/1/2022 15:46

I agree, I'd prefer it if they were buying rather than selling. To be honest, I'm never really sure how much weight to put on such transactions. On the positive side, they all still have significant holdings and should be aligned with the interests of shareholders. If I was in their position then I'd perhaps be inclined to take a bit out and enjoy it (can't take it with me). But I do appreciate that it can be a negative signal and no doubt there are lots of incidences where such sales have coincided with poor future share price performance.

[gn100] 06/1/2022 15:28

RP19. Absolutely correct - but my point was they are persistent sellers. Some buying might be nice and might foster the idea that they have confidence in the future earning capability of the Company.

[rp19] 06/1/2022 15:15

Today's RNS is not a new sale but a correction to the RNS issued on 14th Sept 2021 (corrected some incorrect figures). After the sale of 30,000 shares in Sept, the Smith's still own over 900,000 shares. The Chairman (Sandy Adam) and connected parties sold 4 million shares in Feb 2021 (retaining approx 37.8 million shares).

[gn100] 06/1/2022 14:18

Innes Smith (CEO) reduces his stake yet again. It would be nice if the CEO showed confidence in the business and bought instead of selling. Matters might improve if the board found a way to improve on their single figure operating margin.



The Simon Thompson IC article yesterday produced the usual opening share price bounce this morning but then fell back as the profit takers from the bounce appeared.

[alan@bj] 06/1/2022 07:09

Pershing increasing their stake again.

[gn100] 05/1/2022 20:53

Thanks for the heads up alan@bj as Simon Thompson's articles seem to have vanished of late from my IC e mails. SPR price has been somewhat lacklustre after the mid-summer peak so it would be great to see some action on this share. Seems a much better proposition than INL, also in his article. No doubt the prices of both will receive a boost in the morning as IC readers pile in.

[alan@bj] 05/1/2022 17:41

Simon Thompson has published another detailed note on Springfield today, ending it with, "a strong share price re-rating could and should materialise. Buy."

[davebowler] 25/12/2021 09:37

Its in their Onsite News 8th Dec sent by email. Sorry I don't have a link.

[aldriglikvid] 25/12/2021 07:43

Apollo Global Management has struck a deal to buy housebuilder Miller Homes for more than £1bn as the private equity investor aims to increase its exposure to the UK’s booming housing market.

[aldriglikvid] 24/12/2021 05:07

@davebowler

Very encouraging comments. I like the acquisition. May I ask, I'm able to access Cenkos Research but I can't see that very comment (or any comments about Springfield). Are you able to help me with a link? Thanks!

[swiss paul] 20/12/2021 15:47

Result of General Meeting

The Board of Springfield (AIM: SPR), a leading housebuilder in Scotland delivering private and affordable housing, is pleased to announce that at the General Meeting held earlier today, for Shareholders to approve the issue of the Placing Shares, all Resolutions were duly passed.

Accordingly, the Company has raised gross proceeds of £22.0 million further to the announcement made in connection with the Placing on 1 December 2021 (the "Launch Announcement").

Application has been made for the Placing Shares to be admitted to trading on AIM and it is expected that Admission will become effective and that dealings in the Placing Shares will commence at 8.00 a.m. on 21 December 2021.

Immediately following Admission, the Company's issued share capital will consist of 118,270,326 Ordinary Shares. No shares are held in treasury and therefore there will be 118,270,326 total voting rights in the Company. This figure may be used by Shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

Capitalised terms used in this announcement have the meanings given to them in the Launch Announcement, unless the context provides otherwise.

[davebowler] 08/12/2021 08:56

Cenkos-
SPINGFIELD (SPR: 146.5p; NR): I caught up with management following last week’s announcement of the £56.4m net acquisition of Tulloch Homes. Buying a highly complementary business at basically the equivalent of book asset value which is backed by 1791 plots, 90% of which is owned and fully paid for (no land creditors), is not unique but it is rare in the housebuilding industry. Springfield puts this partially down to its long courtship of the business, its attraction as a custodian and the limited competition for the business. It is not intended to be a synergies/cost driven purchase but one that enhances its position in the Highlands region and can positively drive volume, aided by introducing more affordable and even PRS on Tulloch’s larger sites – the land bank comprises 33 sites of which 11 are active plus an option over 600 plots at one site near Inverness. Management has stated that the acquisition will be earnings enhancing immediately and “significantly” so in the first full year of ownership. New consensus numbers put that at as much as 7% this year and 14% next; year to May-22 adjusted PBT £20.5m/EPS 15.5p (+9.5%) and FY23 £25.2m/18.3p (+18%). The structure of the deal with part equity and £13m of (non-conditional) deferred consideration means that leverage will rise to c1.6x at May-22 but slim by 0.2x-0.3x per annum thereafter.

[swiss paul] 01/12/2021 11:28

Well the placing got away. As it was not open to us punters, lets see if the board managed to 'load up'. If they did then I will be disappointed.

[gn100] 01/12/2021 11:15

Progressive publishes new research on Springfield, available free with a sign up:-

[davebowler] 01/12/2021 10:29

Cenkos;
SPRINGFIELD PROPS (SPR; 147p; NR): The group is expanding its Scottish presence, specifically into the Highlands region around Inverness, with the part equity funded acquisition of Tulloch Homes. The net consideration is £56.4m (comprising gross £77.6m less expected net cash on completion of not less than £21.2m) with £42.4m being payable as an initial sum and £13m deferred (half due in Dec-22 and the balance in Aug-23). Payment of the initial consideration will be met from a new £22m bridge finance facility which will be repaid in full by the proposed equity placing plus £21.4m from its increased RCF with RBS (upped from £64.5m to £87.5m on the same terms). The proposed share placing comprises 15.714m shares at a price of 140p to raise gross proceeds of £22m.



In the financial year to June-21, Tulloch sold 219 homes (160 PD and 59 affordable) at an average PD selling price of £237k from 11 active sites which still have 558 units at a gross margin of c21% in stock or build. The land bank consists of 1,791 plots of which 87% have planning permission and has a GDV of £375m. Some 91% of the land bank is owned, 9% contracted and in addition it holds an option over a site near Inverness for 600 homes. Revenue was £46.4m and operating profit £6.3m (margins 13.6%) with PBT £6m. Its 3-year average adjusted GM is 21%. Net assets adjusted for 2 site exclusions and some revaluation for planning status are £74.6m and as such Springfield is buying at a rare discount to NAV and 9x historic EBIT. Management expects the deal to be “significantly” earnings enhancing from the first full year of ownership. (Current consensus EPS for the year to May-23 are 17.2p, +14.5% on consensus FY22).



Tulloch certainly accelerates Springfield’s growth in a region where it has been slowly building an organic foothold, and one of strong demand. It comes with a good 7-year land bank and will potentially improve the group’s supply chain and resource. The established, experienced management team with its new (internal) MD, is staying with the business.

[aldriglikvid] 19/11/2021 13:45

Lockdown is coming again in Germany, Holland and Austria. Several more countries on the brink. "The House" will be ever more important the coming 10 years. I can't believe you're skipping this p/e 7 company with 15 000 plots on the balance sheet.

[aldriglikvid] 16/11/2021 19:04

hxxps://www.scottishhousingnews.com/article/scottish-house-price-rise-outpaces-rest-of-uk

[nallen1] 09/11/2021 09:51

Struggling to buy with ii.

[mr hangman] 27/10/2021 16:41

Totally agree with your last line, a strong buy to me

[aldriglikvid] 27/10/2021 14:36

The CEO addressed 2 weeks ago and it wasn't a problem then. He then went in to detail and explained that construction costs aren't rising near enough to what they're able to price.

Anyways, blasting report from US peer "Taylor Morrison Homes" today - up +13% as we speak.


Springfields landbank is on the balance sheet for 10k a piece - and they sold a couple for 80k a piece last quarter.

Don't worry about inflation, it's the customer who gets in the end. Always been like that, always will.

[paulo435] 27/10/2021 11:18

It’s labour and supply of materials that concern me as much as cost being a consideration - would like to see more reassurances in that respect, looks a big risk to me at the moment but I’m not close enough to it.