Research on Springfield Properties PLC (SPR:LON) from Equity Development
Springfield’s FY26 results confirm a resilient trading performance in a year of significant strategic progress. Good progress was made in Private and Affordable housing, with revenue and gross margins advancing in both divisions. The strength of cash generation was a clear highlight, eliminating all bank debt and paving the way for the recently announced share buyback programme. Reflecting the strength of the balance sheet, the Group has elected to develop its remaining landholdings in Central Scotland rather than pursue their sale, thereby maximising the value of the land bank without constraining opportunities in the North of Scotland. It was also a milestone year for Springfield in the North of Scotland, which saw the Group enter into an agreement with a major energy infrastructure provider for the build and lease of almost 300 homes. The detailed works agreements are expected to follow in the relatively near term. Our new FY29 forecasts reflect the impact of the build and lease dynamics. Springfield’s shares continue to trade at a c.30% discount to current year NAV, which in our view fails to reflect the Group’s unique positioning and growth potential. We reiterate our 175p/share Fair Value estimate.
View Full Research