Springfield Properties Share Discussion Threads

[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 17:41

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

[aldriglikvid] 27/10/2021 15:36

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 12:18

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.

[aldriglikvid] 27/10/2021 11:44

It's a terrible mistake to jump out of this one because of higher construction costs. Please listen to the last call and you'll understand that construction costs are not even 30-40% of the total price to the consumer, hence it's not 1:1.

hxxps://www.scottishlegal.com/article/registers-of-scotland-house-prices-up-16-per-cent-in-a-year


The price increases for houses will far, far outpace costs.

[tomps2] 15/10/2021 09:54

Springfield pitched to Fund Managers in the PIWORLD Sell it to the City. Listen to the pitch here at 18m.

Video link:

Podcast:

Further, please vote based on the pitches!

Vote for the company
Vote for the pitch

[paulo435] 12/10/2021 15:58

To me there’s too many supply chain problems at present and massive increases in costs - the sales values can’t keep absorbing that. Also labour is a real struggle and tradesman availability across the piece. I’m out for now here and will sit on the sidelines to observe. The industry in general I am referring to, not specific info on Springfield. It’s put me off however.

[aldriglikvid] 12/10/2021 14:09

The latest investor meeting is available here (video): hxxps://www.progressive-research.com/events/ and here (PDF) hxxps://wp-perl-2020.s3.eu-west-2.amazonaws.com/media/2021/09/27154115/SPR-Progressive-Mello-Presentation.pdf

[aldriglikvid] 22/9/2021 14:05

I was unable to listen in yesterday. What were the main takeaways?

[gn100] 21/9/2021 23:49

I accept all the very good figures and I realise that no one will have a justifiable answer but the question in my mind is why has the share price remained static for some time? I refrained from asking this during their presentation because the answer would have been a lot of flannel but the question still is there in my mind. Having said that and on balance and because I rely on the figures I added to my position.

[tole] 21/9/2021 18:33

https://www.fool.co.uk/investing/2021/09/21/3-cheap-stocks-to-buy-with-3000/Another bargain UK shareSpringfield Properties is another cheap stock I have my eye on today. Not only does the Scottish housebuilder trade on a low price-to-earnings (P/E) ratio of 10 times for the current fiscal year, its forward dividend yield sits at a chubby 4%.Recent GDP numbers suggest the British economic recovery's cooling sharply. This is a worry for Springfield Properties as it could affect home sales in the short-to-medium term. That said, Rightmove's latest study showing average property prices rise 0.3% in September has soothed my own concerns somewhat. It shows that housing demand continues to outstrip supply in the UK. It's a phenomenon I expect to live on too as interest rates will likely remain below historical norms.

[melloteam] 20/9/2021 01:50

Springfield Properties will be presenting at the Progressive in conjunction with Mello Events ‘Introducing you to new Investment ideas’ webinar on Tuesday 21st September at 3-5pm. The virtual conference will provide you with the opportunity to hear from the management teams of four very different companies.
The event is free and you can register here:

The programme is as follows:

3.00pm – 3.25pm: Forterra
3.25pm – 3.50pm : CEPS
3.50pm – 4.15pm: Kape Technologies
4.15pm – 4.35pm: Alyx Wood
4.35pm – 5.00pm: Springfield Properties

[spob] 19/9/2021 19:52

doubled my holding here last week

[tole] 19/9/2021 15:57

https://masterinvestor.co.uk/equities/small-cap-round-up-featuring-kape-technologies-sthree-and-mp-evans/Springfield Properties (LON:SPR) – 200p is a good price at which to aimThe year to end May, for this leading Scottish housebuilding group, reported a 51% improvement in sales to £216.7m and an impressive 81.4% increase in pre-tax profits at £18.5m. Earnings came out at 14.41p, up 73%, and the dividend was raised 187.5% to 5.75p per share.This is a cracking set of figures that reflected the group's strong build and sales activity throughout the year, with high demand having been experienced across the business resulting in significant growth in revenue in private and affordable housing.Analyst Alastair Stewart at Progressive Equity Research sees the group's revenues rising gradually over the next three years to £283.1m by end May 2024, and profits rising to £25.2m in the same period. That would be worth 18.7p per share in earnings.Such quality growth will see the shares continue to rise in price, with 200p being an easy objective.They closed last night at 151p, offering a very good upside potential.

[aldriglikvid] 14/9/2021 19:15

ST is out with a new TP of 220p. I agree with him on that part, other than that the article lacks a punch (IMHO)

Don't overcomplicate things. This is trading at 6-7x PBT. Land bank > mcap.

[gn100] 14/9/2021 18:55

dros1. Yes, interesting. When you check their 6 month charts the SP's are not doing well at all. The odd one out is BKG that has done better, but with a bumpy ride.

[dros1] 14/9/2021 17:40

ST: Buy price target 220P

[dros1] 14/9/2021 17:35

GN100
other builders have not done better, checks on Google finance SPR against Barratt , Taylor and Persimmon for last 6 moths, SPR was the best not by much but still better than these builders

[gn100] 14/9/2021 17:18

It seems like the CEO is just steadily divesting himself of his holding.

drosi - February 2021 SA sells at 138 and now we are at 147/155. Not exactly startling share price performance when one considers the boost that most builders have had over that time. Whilst their results read well I think I could have found a better home for my money than Springfield.
The strange thing is that I find the lackluster share price performance hard to justify against their financials