But housebuilder’s profit to be lower than previous year

Springfield expects to increase its annual revenue by 28%.

The Scottish housebuilder, in a trading update for the year ending 31 May, said its revenue will be around £330m.

Springfield properties Bertha Sudscrescent

A Springfield Properties development

It said its turnover was boosted by the acquisitions of housebuilders Tulloch Homes and Mactaggart & Mickel Homes.

Springfield said its profit for the year will be in line with its expectations, but lower than the £18.4m pre-tax profit reported last year due to “significant build cost inflation, particularly on fixed-price contracts in affordable housing, affecting margins across the group.”

The housebuilder has previously announced it has taken the decision to ‘pause entering long-term affordable housing contracts.’

The housebuilder said that as of 31 May it had a landbank of 16,300 plots of which more than half had planning permission.

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Innes Smith, CEO of Springfield Properties, said: “Against a challenging market backdrop, we delivered our highest annual revenue, reflecting our acquisitions as well as organic growth in private housing.

“While our margins were impacted by significant build cost inflation, particularly in affordable housing, we took decisive action to address this”.

“We remain cautious about the near-term outlook, particularly given the softening in demand following the increase in rates by the Bank of England to 5%. We are closely monitoring the economy and buyer behaviour in both the housing and land market and carefully managing our activities to limit our exposure in the slower sales environment.”