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According to a year-end trading report, Springfield has reduced its bank debt faster than planned.

The Scottish housebuilder’s latest update, covering the financial year ended 31 May, shows that debt has been reduced to around £40 million, above its stated target of £55 million.

Springfield Real Estate

However, the company’s turnover is expected to be around £266 million, well below last year’s £332 million.

The total number of completions is also expected to decline compared to the previous year, from 1,301 to 870.

Profit before tax is expected to be slightly above market expectations, which the company attributes to gains from land sales of around £28 million.

Innes Smith, Chairman of Springfield Properties, said: “One of our key priorities this year has been to reduce our debt and we are pleased to have exceeded our target.”

“This was achieved by securing profitable land sales, which, along with continued cost control, enabled us to deliver better than expected profits.”

According to the company, market conditions this year have been “challenging, due to subdued homebuyer confidence and lower activity in the affordable housing sector.”

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Smith said, however, that he was “cautiously optimistic” about the coming year.

“Many fundamental factors underpinning homebuyer confidence are expected to strengthen, including a new UK government, falling inflation and an expected interest rate cut,” he said.

Having returned to the affordable housing market during the year, the Group reported revenues of around £46 million in this segment. It expects to report affordable housing revenues in line with market expectations in the 2025 financial year, representing growth of around 40%.

The group said it remains on track to deliver private housing revenues in line with market expectations in fiscal year 2025.

The final results will be published in September.