Market's view on Springfield Pr.
Published on April 2024
- Investors Chronicle strongly recommends buying shares, highlighting a forward price/earnings ratio of 9.4 and a 46% discount below book value, citing signs of recovery.
- Springfield Properties has raised over £18 million from land sales since October to reduce debt, with ongoing discussions for further sales.
- Positive outlook on Springfield’s ability to deliver on H2 promises, with early signs of house price recovery and rising earnings growth, despite tax increases in Scotland.
- Springfield’s interim results show confidence in future growth, with a focus on cash generation and cost control, leading to a reiteration of the full-year expectations and a significant increase in private housing activity.
- Barratt’s £2.5bn offer for Redrow speculated to potentially uplift similar companies.
- Stewart Milne Group’s administration highlights significant job losses and challenges in the construction sector.
- Resilient house prices in Scotland and Northern Ireland contrast with declines in Wales.
- Springfield viewed as undervalued with a substantial land bank; stock considered a steal under £1 due to improving macroeconomic conditions and a sensible debt reduction program.
- Confidence in Springfield’s profit recovery and debt reduction strategy is increasing, with shares still undervalued compared to sector peers.
- Springfield’s trading update confirms performance in line with expectations, with stable private housing demand and progress in affordable housing contracts. Net bank debt is on target for significant reduction by the end of the financial year.