But housebuilder reports record sales in first week of reopening
Scottish housebuilder Springfield has seen its revenue fall by 25% and pre-tax profit plunge by 44% because of covid-19.
In a trading update to the City, the housebuilder said that it had been unable to complete its homes scheduled for handover in April and May 2020, which had made up 30% of its annual revenue for the past two years.
These homes have now been postponed until the new financial year, bringing revenue down from £190.8m in 2018/19 to £144m in 2019/20, and pre-tax profit from £16m to £9m in the same period.
But the firm did report a rebound in house sales.
In the first week after sales offices reopened on 29 June it recorded the most reservations ever in a one-week period due to pent-up demand.
The firm expects its quarter one 2020/21 sales to be significantly higher than the same period last year, although it warned that its performance over the remainder of the year will be reliant on there being no further lockdowns due to a second spike of covid-19.
In April the firm furloughed 90% of its 705 employees, leaving it with just 70 staff, and cut the salaries of executive and non-executive directors by 50%.
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