Springfield Properties

Scottish housebuilder plans to float on AIM



Springfield Properties has announced its intention to seek admission of its ordinary shares to trading on the Alternative Investment Market (AIM) of the London Stock Exchange.

The housebuilder – which was founded in 1956 – focuses on developing private and affordable housing in Scotland and has developed over 4,000 homes since 1988.

Sandy Adam, executive chairman of Springfield, said the IPO was the next step in its growth.

“Throughout our history, Springfield's strategies have achieved our aim of steady growth, doubling the company in size every five years.

“Our turnover exceeded £100m for the first time this year and now we employ around 500 people.”

Springfield’s directors believe the housebuilder is well positioned for further growth having secured a land bank of approximately 10,500 plots as of 31st August 2017, of which 41.4% have planning permission.

The total land bank increases to over 12,000 plots with a gross development value of over £2bn when Springfield’s unallocated land bank is included.

Over the past four years, Springfield has secured land or entered into other arrangements relating to the development of five villages with an estimated gross development value of £1.5bn.

The development of these villages is expected to involve significant net cash outflows in relation to land purchases, remediation works and infrastructure of between £8m-12m per site.

The net proceeds of the floatation on the AIM – together with Springfield’s debt facilities and internally generated cash – will be used to realise the value of the sites secured by the group.

“The new funding will enable us to invest in the infrastructure of five new villages in Scotland, and in existing sites, accelerating the delivery of new homes – private and affordable – in new communities,” added Sandy.

"Scotland needs more homes countrywide and Springfield is poised to play a significant part in delivering these homes for private individuals and across all tenures in the affordable and social housing sector."


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