Springfield Properties Share Discussion Threads

[trustman] 01/8/2022 16:10

Bit more life.....Year end (May) figures soon?

[18bt] 29/6/2022 07:43

Tip update by Russ Mould in today's Telegraph

[swiss paul] 28/6/2022 21:55

Eh up -= do we see movement?

[martke] 22/6/2022 17:45

(Sharecast News. 22.6.22) - Housebuilder Springfield Properties has agreed to acquire the Scottish housebuilding business of Mactaggart & Mickel Group for £46.3m.
Springfield said on Wednesday that it will pay £10.5m in cash upon completion, while a deferred cash consideration of £35.8m will be paid proportionally as homes are sold over the next five years.

The acquisition will be funded from Springfield's internal resources and existing debt facilities with the Bank of Scotland.

Springfield highlighted that the acquisition was expected to be earnings enhancing in the current year ending 31 May 2023.

The AIM-listed firm added that it expects to report results in line with market expectations for the year ended 31 May 2022, with "good revenue growth" and a "better-than-expected" reduction in net debt to roughly £39.0m.

[swiss paul] 09/6/2022 20:04

Nope Spob, its continued falling ever since you had your dose of optimism

[spob] 07/3/2022 20:01

No worries. Their value will keep rising in the meantime

[jimarilo] 07/3/2022 09:33

Soon all building sites will come to a grinding halt

[km18] 22/2/2022 13:44

Springfield Properties posted its Interims this morning and business has been solid, although down from bumper COVID-boosted H1 2021 numbers. As Innes Smith, CEO observed, "This was a strong period for Springfield. We continued to experience high demand across the business and our total order book grew to a record level.” Revenue was down to £87.3m in H1 2022 from the £94.4m recorded in H1 2021, but these H1 2021 results reflect additional sales from completions rolled over due to COVID-19. Profit before tax was £6.2m, basic EPS 4.93p and the interim dividend was raised to 1.5p.

The business has "entered the second half on track for strong growth for FY 2022 in line with market expectations”, which if delivered would equate to around 15% top-line growth and over 37% bottom line growth. This is pretty impressive for the homebuilding sector. Valuation is also cheap with forward PE ratio around 8 and PS ratio of 0.8 top third for the sector. Growth and a reasonable price. The share price has been trading sideways for 12 months now, so lacks momentum. This is perhaps the main near term cloud for the share, but otherwise the business is solid and the share is an attractive BUY....

..from WealthOracleAM

[aldriglikvid] 26/1/2022 11:00

According to the CEO:

30% of ASP is Materials
30% Labor
20% Land
20% Profit


ASP increase will far, far outpace Materials and Labor. Always have.

[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.