Final Results and Publication of Annual Report

Springfield Properties PLC

15 September 2026

 

15 September 2026                                                                                                                             

Springfield Properties plc

("Springfield", the "Company", the "Group" or the "Springfield Group")

Final Results and Publication of Annual Report

Strong underlying growth and significant strategic delivery

Springfield Properties (AIM: SPR), a leading housebuilder in Scotland, announces its final results for the year ended 31 May 2026.

Financial Highlights

	2026 £m	2025 £m	Change
Revenue	243.7	280.6	(13.2)%
Private housing revenue	165.0	155.8	5.9%
Affordable housing revenue	54.3	49.4	9.9%
Contract housing revenue	5.1	11.0	(53.6)%
Land sales	14.1	60.5	(76.7)%
Other revenue	5.2	3.9	33.3%
Gross margin (%)	16.4%	18.6%	(220)bps
Administrative expenses*	25.4	27.6	(8.0)%
Operating profit	14.8	24.2	(38.8)%
Adj. operating profit*	15.8	25.2	(37.3)%
Profit before tax	11.9	19.0	(37.4)%
Adj. profit before tax*	12.9	20.1	(35.8)%
Basic EPS (p)	7.91p	11.86p	(33.3)%
Adj. basic EPS* (p)	8.51p	12.66p	(32.8)%
Net bank cash/(debt)	1.2	(20.9)	-
Total dividend per share (p)	3.0p	2.0p	50.0%

 * Adjusted to exclude exceptional costs of £0.9m (2025: £1.0m) (See the Financial Review for further detail)

·   The Group delivered a strong performance in 2026, notwithstanding the exceptional comparative period in 2025 that benefited from significant land sales undertaken as part of the Group's debt reduction strategy:

o   Significant year-on-year growth in adj. profit before tax when excluding the contribution from land sales in both years

·      Eliminated net bank debt

·      Made the final deferred consideration payments, post year end, of £20.7m for the acquisition of the Scottish housebuilding business of Mactaggart & Mickel Group Limited 

·    As announced on 10 September 2026, the Company intends to commence a share buyback programme as an effective means to create value for shareholders

·     3.0p dividend proposed in addition to the buyback programme

Operational Highlights

·   Initial agreement signed to deliver almost 300 homes across six sites in the North of Scotland to a major energy infrastructure provider to accommodate workers involved in the upgrade of the national electricity transmission grid; main works agreement for the first site is expected imminently

·      Total completions of 735 (2025: 799)

·      Delivered revenue growth in private housing due to an increase in average selling price ("ASP"), primarily reflecting housing mix

·      Strong performance in affordable housing with revenue growth driven by an increase in completions as well as ASP

·    Large, high-quality land bank of 6,797 owned and contracted plots, 60% of which have planning permission, and 6,211 strategic plots (31 May 2025: 7,279, 66% and 6,293 respectively)

o   Includes 4,104 owned and contracted plots and 4,570 strategic plots in the North of Scotland (31 May 2025: 4,030 and 4,652 respectively) in close proximity to key work areas, demonstrating the Group's strong position in the region

·     Post year end, sold land at a site in Central Scotland for £12.0m - bringing to a successful completion the programme to reduce debt through a series of profitable land sales

o    Strengthened financial position enables the Group to develop its sites in Central Scotland to generate greater value, rather than pursuing their sale   

Innes Smith, Chief Executive Officer of Springfield Properties, said: "This has been an excellent year for Springfield. We achieved a key strategic priority of eliminating our net bank debt, which was significantly ahead of market expectations. Our underlying business remained resilient, with year-on-year growth in both private and affordable housing. We made significant progress in capitalising on the substantial opportunities in the North of Scotland, which are being driven by the incoming energy security infrastructure and renewable development. Building on our initial agreement to deliver almost 300 homes across six sites for a major infrastructure provider, we have been engaging with our partner as well as progressing works, and we will be signing the main contract for the first site imminently.

"Looking to the current year, our private housing reservation rate has been steady and we have continued to secure new contracts on favourable terms in affordable housing. Our significantly strengthened balance sheet has enabled us both to increase our dividend and launch a share buyback programme. We are disappointed that the market continues to undervalue housebuilders, with Springfield's share price remaining materially disconnected from our view of the underlying value of the business, reflecting neither the strength of our balance sheet, the quality of our land holdings or the opportunities available to us in the North of Scotland. We therefore see the buyback as a compelling opportunity to create value for shareholders while demonstrating the Board's confidence in Springfield's future prospects. With strong operational momentum and significant opportunities ahead, we look to the future with confidence."

Enquiries

Springfield Properties
Sandy Adam, Chairman Innes Smith, Chief Executive Officer Iain Logan, Chief Financial Officer	[phone]
Cavendish Capital Markets Limited
Neil McDonald Peter Lynch Hanna Leijonmarck	[phone] [phone] [phone]
Gracechurch Group
Harry Chathli Claire Norbury	[phone]

Analyst Research

Equity Development produces freely available research on Springfield Properties plc, including financial forecasts. This is available to view and download here:

https://www.thespringfieldgroup.co.uk/news/updates-and-analyst-reports

Analyst Presentation

Innes Smith, CEO, and Iain Logan, CFO, will be hosting a presentation for analysts at 9.00am BST today at the offices of Cavendish, 1 Bartholomew Close, London, EC1A 7BL. To register to attend, please contact: [e-mail]

Results Investor Webinar

Management will be presenting to shareholders, via a webinar hosted by Equity Development, at 9.00am BST on Wednesday 16 September 2026. Investors can register their attendance for the webinar here:

https://www.equitydevelopment.co.uk/news-and-events/springfield-properties-full-year-results-investor-presentation-16-september-2026 

Operational Review

The Group's underlying business remained resilient, with a year-on-year increase in revenue in both private and affordable housing. Total revenue was £243.7m (2025: £280.6m), as expected, and reflects the contribution from significant land sales in the previous year. The underlying growth was achieved against a backdrop of subdued demand across the UK housebuilding industry. While inflation and interest rates began to stabilise and affordability gradually improved, demand across the market was generally more measured than the levels experienced prior to the economic disruption of recent years.

Springfield made significant progress in implementing its strategy to capitalise on the substantial opportunities in the North of Scotland, which are being driven by the requirement for housing to support the delivery of the incoming energy security infrastructure and renewable development. The significant strengthening of the Group's balance sheet, as described further below, has also enabled the Board to make the decision to develop its remaining sites in Central Scotland rather than pursue their sale.

Significant Progress in the North of Scotland

The Group reached an important milestone in entering an initial agreement with a major energy infrastructure provider in the North of Scotland towards the build and lease of 293 homes at six sites across the Highlands, Moray and Aberdeenshire. The initial funding received under this agreement enabled works to progress on multiple sites while the Group advanced negotiations on the main works agreements. The Group expects to sign the first main works agreement, for a site totalling 39 homes, imminently.

The Group will receive a significant payment upon handover of the homes followed by recurring monthly rental income for the duration of the lease, providing enhanced visibility of future cash flows while creating additional optionality at the end of the lease. Once handed over, the furnished and serviced homes will accommodate workers involved in the partner's energy upgrade projects.

At the conclusion of the lease period, as well as transferring homes to affordable providers, the Group will have multiple attractive options, including making the housing available for private housing sales or sales to private rented sector providers. 

The Group is continuing to discuss further opportunities with other infrastructure providers to deliver new housing on a similar basis to support the upgrade of crucial energy infrastructure in the North of Scotland. Management continue to see substantial opportunities in the region for the years to come. The Group's position to help deliver this housing is also strengthened by the expansion of its land bank in the region as described below.

Land Bank

As at 31 May 2026, the Group had a total of 3,535 owned plots (31 May 2025: 3,912), of which 72% had planning permission (31 May 2025: 72%), and 3,262 contracted plots (31 May 2025: 3,367), of which 48% had planning permission (31 May 2025: 58%). This includes 4,104 owned and contracted plots (31 May 2025: 4,030) across 57 sites (31 May 2025: 50) in the North of Scotland.

In addition, Springfield has established a significant strategic land bank with options over 6,211 plots as at 31 May 2026 (31 May 2025: 6,293), of which 4,570 plots (31 May 2025: 4,652) are in the North of Scotland. The slight reduction primarily reflects the Group converting strategic plots in the North of Scotland to owned and contracted plots as it continued to strengthen its landholdings in the region.

The objective of the National Planning Framework 4 (NPF4), Scotland's national planning policy, to deliver more housing is currently failing. Fewer sites are coming forward through the planning system and access to development land is becoming more constrained as Local Authorities across Scotland work through the process of adopting new Local Development Plans. This reinforces the value of Springfield's high-quality land bank, which provides a substantial pipeline of deliverable sites.

To further strengthen this position, during the year and post period, Springfield promoted land through emerging Local Development Plans across the North of Scotland, and has been actively securing options over this land. In addition, the Highland Council's Masterplan Consent Areas are accelerating the planning process for two of the Group's strategically important sites, which will enable Springfield to respond more quickly to growing housing demand across the region.

The total owned and contracted land bank equated to nine years of activity and had a gross development value at 31 May 2026 of £1.8bn (31 May 2025: £1.8bn).

At year-end, the Group was active on 36 developments (31 May 2025: 40). During the year, 15 developments were completed and 11 new developments became active.

During the year, the Group completed profitable land sales of £14.1m (2025: £60.5m). This primarily represents the sale of the final site under its agreement with Barratt Redrow plc that was entered in FY 2025. In addition, post year end, the Group sold land at one of its sites in Central Scotland, equating to 170 plots, for £12.0m. This brings to conclusion the successful programme that the Group commenced two years ago to unlock value from its substantial land bank through a series of profitable land sales.

Maximising Value of Land Bank

On 17 February 2025, the Company announced that it had agreed to profitably sell to Barratt Redrow 2,480 plots of undeveloped land primarily in Central Scotland for £64.2m in cash - with the proceeds to be used to accelerate the removal of the Group's bank debt and to capitalise on the significant opportunities in the North of Scotland, which became the strategic focus. The Group intended to build out and sell its existing live private and affordable housing sites in Central Scotland over a number of years and maintain a long-term presence in the region through its village developments in Dundee and Perth. The Group would seek to sell the remaining undeveloped land in Central Scotland, with new projects and land buying becoming focused on the North of Scotland.

The Group's strategy continues to be to capitalise on the significant opportunities in the North of Scotland, which the Board believes will the primary driver of growth. However, with the strengthening of the balance sheet - including reaching a net cash position and making the final deferred consideration payment for the Mactaggart & Mickel acquisition earlier than expected - the Group now has greater financial flexibility. Accordingly, and as part of its ongoing assessment of how to maximise value from its landholdings, the Board has taken the strategic decision to develop its remaining landholdings in Central Scotland rather than pursue their sale. The Board believes that developing these sites for private and affordable housing will generate greater value than if they were to be sold. The Group may also seek to purchase land in Central Scotland where the terms are attractive. With the strengthened financial position, the Group is now able to maximise the value of its landholdings in Central Scotland without impacting its ability to capitalise on what the Board believes are the greater opportunities in the North of Scotland.

While the Group's operations in Central Scotland will continue to reduce as sites are completed, this will be to a lesser extent than previously expected as more of its workforce will be retained for the development of sites that the Group had intended to sell. However, overheads being higher than previously anticipated is expected to be offset by increased revenue resulting in greater profit in the medium term.

Private Housing

In private housing, there was an increase in ASP to £348k (2025: £313k), primarily due to housing mix but also reflecting a slight uplift in underlying pricing. This served to more than offset the reduction, as expected, in completions to 474 (2025: 497). Gross margin also improved as a result of housing mix. The number of reservations at 31 May 2026 was broadly in line with the same point of the previous year. Since year end, while consumer sentiment has remained cautious, the private housing reservation rate has remained stable and in line with management's expectations.

The Group's customer satisfaction score increased to 97% for FY 2026, up from 96% in the previous year. This achievement reflects the dedication of the Group's teams across the business and their continued focus on delivering high-quality homes and an excellent customer experience.

As at 31 May 2026, Springfield was active on 21 private housing developments (31 May 2025: 25), with four active developments added during the year and eight developments completed. In total, as at 31 May 2026, the owned private housing land bank consisted of 2,344 plots (31 May 2025: 2,598 plots), of which 67% had planning permission (31 May 2025: 68%).

Affordable Housing

The number of completions in affordable housing grew to 243 (2025: 237) and the ASP increased to £224k (2025: £207k). The change in ASP reflects the increased pricing across the sector following the Scottish Government making higher levels of grant subsidy available to affordable housing providers. The Group also continued to secure new contracts in line with management's expectations. With the Scottish Government continuing to implement supportive measures, including a further increase in funding for its affordable housing supply programme in the 2026-27 Budget as part of a commitment to a record investment of £4.9bn over the next four years, management remain optimistic for Springfield's prospects in this market. Springfield's strong relationships with housing associations and local authorities position the Group well to support this objective and to continue to play an important role in the delivery of affordable housing across Scotland.     

The number of active affordable housing developments was 14 as at 31 May 2026 (31 May 2025: 14), with seven active developments added and seven developments completed during the year. As at 31 May 2026, the total owned affordable housing land bank consisted of 1,191 plots (31 May 2025: 1,314), of which 82% had planning permission (31 May 2025: 82%).

Contract Housing

In contract housing, Springfield provides development services to third party private organisations and receives revenue based on costs incurred plus fixed markup. To date, this has largely consisted of services provided to Bertha Park. As at 31 May 2026, the contract housing land bank with planning consent consisted of 482 plots (31 May 2025: 500). The 18 homes completed during the year (2025: 65) were private homes at Bertha Park (2025: 42 private homes and 23 affordable homes completed at Bertha Park). As anticipated, completions were lower than the prior year due to the planned timing of construction and handovers at Bertha Park.

Financial Review

Revenue	2026 £'000	2025 £'000	Change
Private housing	164,960	155,776	5.9%
Affordable housing	54,334	49,380	10.0%
Contract housing	5,098	10,976	(53.6)%
Land sales	14,123	60,507	(76.7)%
Other	5,184	3,918	32.3%
TOTAL	243,699	280,557	(13.1)%

For the year ended 31 May 2026, revenue was £243.7m (2025: £280.6m). Private housing remained the largest contributor to Group revenue, accounting for 67.7% of total sales (2025: 55.5%). Affordable housing contributed 22.3% (2025: 17.6%) and contract housing accounted for 2.1% (2025: 3.9%). Land sales accounted for 5.8% (2025: 21.6%) and other revenue for 2.1% (2025: 1.4%).

Gross margin was 16.4% (2025: 18.6%). This reflects the exceptional gross margin of the significant land sales in the prior year. There was an increase in gross margin in private housing and slight improvement in gross margin in affordable housing. Gross profit for the year was £40.0m (2025: £52.1m) reflecting the lower Group revenue and gross margin.

Administrative expenses, excluding exceptional items, were reduced to £25.4m (2025: £27.6m). This reflects a continued focus on carefully managing costs across the Group and restructuring in line with the Group's new strategy.

Exceptional items were £0.9m (2025: £1.0m), relating to restructuring costs and legal fees.

Operating profit was £14.8m (2025: £24.2m) and, excluding exceptional items, it was £15.8m (2025: £25.2m). The reduction was due to the lower gross profit.

Net finance costs were reduced to £2.9m (2025: £5.2m) as a result of lower bank interest payments primarily due to the significant reduction in bank debt, but also lower interest rates.

Statutory profit before tax was £11.9m (2025: £19.0m) and adjusted profit before tax and exceptional items was £12.9m (2025: £20.1m). This reflects the reduction in operating profit, which was partly mitigated by the lower net finance costs.

Basic earnings per share (excluding exceptional items) was 8.51 pence (2025: 12.66 pence) and statutory basic earnings per share was 7.91 pence (2025: 11.86 pence). Return on capital employed was 7.4% (2025: 12.6%), which reflects the lower profit.

The Group continued to focus on reducing debt and exercising disciplined cost control and achieved net bank cash at 31 May 2026 of £1.2m (31 May 2025: net bank debt of £20.9m). To provide the headroom to be able to capitalise on opportunities as they arise, a new revolving credit facility was secured for three years until August 2028 with an initial facility limit of £77.5m that reduced to £47.5m in August 2026. The Group also has an overdraft facility of £2.5m until August 2027. Since year end, the balance sheet has been further strengthened as the Group has made the final deferred consideration payments for the acquisition, which completed in June 2022, of the Scottish housebuilding business of Mactaggart & Mickel Group Limited, which was well ahead of the deadline.

Environment and People - ESG

ESG remains an integral part of Springfield's long-term strategy, supporting the sustainable growth of the business while creating positive outcomes for customers, colleagues, communities and wider stakeholders.

Sustainability is embedded in the way the Group builds, with 100% of its homes manufactured off-site in its timber frame factories. New homes in Scotland are already being delivered to significantly higher environmental standards than elsewhere in the UK, with low-carbon heating systems replacing traditional gas boilers and EV chargers provided as standard. As homes become increasingly electrified, investment in upgrading Scotland's electricity network becomes ever more important to ensure there is enough capacity to support them.

The Group's activities in the North of Scotland continue to support the delivery of high-quality housing in areas experiencing increasing demand linked to the energy transition. As investment in renewable energy and energy security infrastructure continues across the region, Springfield is playing an important role in helping to house the workforce required to support these projects, contributing to both local economic growth and the UK's wider transition to a more sustainable energy future.

Springfield remained committed to developing the next generation of talent. During the year, a further 28 apprentices were recruited across a range of disciplines. This brings the total number of apprentices to 64, representing 20% of the Group's site-based workforce. These individuals will play an important role in Springfield's future success, helping to address industry skills shortages while creating valuable career opportunities within local communities.

Markets

Springfield delivered a resilient performance with demand for well-located, high-quality homes being evident. While customers were cautious and decision-making cycles were often longer, reflecting the pattern of more muted demand seen across UK housebuilding, the underlying need for new homes across Scotland remained strong and continued to support the long-term market fundamentals.

At the same time, the North of Scotland is already experiencing a different demand dynamic from the wider Scottish market. As energy infrastructure projects move forward, they are expected to create substantial requirements for both permanent housing and accommodation for the construction workforce needed to deliver them. Independent research commissioned by the Scottish Futures Trust estimates that accommodating the transient construction workforce to deliver the Highlands and Islands' energy pipeline will require 10.5m bed nights between now and 2040. At conservatively estimated prices, this represents £1.3bn of expenditure on accommodating this workforce.

Importantly, the year also saw renewed policy support for housing across all tenures from the newly elected Scottish Government. As noted above, the Government committed to increase affordable housing delivery with greater investment over the next four years.

The structural undersupply of housing across Scotland continues to provide a positive backdrop for the sector. This, combined with the unprecedented demand for housing expected to arise from energy and infrastructure investment in the North of Scotland, gives the Board confidence in the long-term prospects for both the Scottish housing market and Springfield's ability to create value within it.

Returning Capital to Shareholders

The Board is pleased to recommend an increased dividend for the year of 3.0p per ordinary share (2025: 2.0p), subject to shareholder approval at the next annual general meeting, with an ex-dividend date of 12 November 2026, a record date of 13 November 2026 and a payment date of 17 December 2026.

The Group also intends to commence a share buyback programme, as announced on 10 September 2026. With the strengthening of the Group's balance sheet, the Board believes that the share buyback programme represents an effective means for creating shareholder value - particularly given the Board's belief that the Company's ordinary shares are significantly undervalued. It also represents a cost-effective method for the Company to satisfy future employee or other share scheme requirements as the repurchased shares will be held in treasury to be later reissued for this purpose.

Outlook

The Group's private housing reservation rate has been steady and in line with management's expectations. This is supported by the Group's ability to offer a range of high-quality homes and in desirable areas across Scotland. In affordable housing, the Group has continued to secure new contracts on favourable terms. The housebuilding industry continues to navigate macroeconomic uncertainty, however the Group is experiencing only modest build cost inflation and has not had any supply shortages. In addition, the Group remains focused on cost discipline and continues to expect to reduce overhead costs in FY 2027 as well as benefit from lower interest expenses due to the reduced bank debt.

The Board remains very excited about Springfield's prospects in the North of Scotland. Forecasts for expected housing demand in the region are substantial, which the Group is well-placed to meet thanks to its strong land bank and established position as a housebuilder of scale in the area. The Group has already made great progress with a major energy infrastructure provider in the region, and continues to receive increasing interest from other organisations who are looking for solutions to their worker accommodation requirements.

The strengthening of the balance sheet - including reaching a net bank cash position and paying the final deferred consideration for the Mactaggart & Mickel acquisition earlier than expected - has provided the Group with greater financial flexibility to maximise value from its landholdings across Scotland. Accordingly, and as described above, the Board has taken the strategic decision to develop more of its Central Scotland sites rather than pursue their sale, which is expected to enhance the Group's revenue and profit in the medium term.       

The Board considers the current market valuation to be materially disconnected from the underlying value of Springfield's landholdings, operational performance, cash generation and long-term growth prospects. Accordingly, the share buyback represents an attractive opportunity to enhance shareholder value while signalling confidence in the Group's future.

The Board continues to believe Springfield is well positioned to capitalise on the opportunities ahead and looks to the future with confidence.

Publication of Annual Report

The Company's annual report and accounts for the year ended 31 May 2026 are being sent to shareholders today and have been made available on the 'Financial Results and Reports' of the Company's website: www.thespringfieldgroup.co.uk

COnsolidated PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31 May 2026

			2026				2025
		Note		£000				£000
Revenue		3		243,699				280,557
Cost of sales				(203,653)				(228,435)
Gross profit				40,046				52,122
Administrative expenses before exceptional items				(25,391)				(27,609)
Exceptional items		5		(948)				(1,032)
Total administrative expenses				(26,339)				(28,641)
Other operating income				1,133				711
Operating profit				14,840				24,192
Finance income				732				361
Finance costs				(3,640)				(5,534)
Profit before taxation				11,932				19,019
Taxation		4		(2,509)				(4,923)
Profit for the year and total comprehensive income				9,423				14,096
Profit for the year and total comprehensive income is attributable to:
Owners of the parent company				9,423				14,096
				9,423				14,096
Earnings per share

Basic		7	7.91p				11.86p
Diluted		7	7.46p				11.28p

The Group has no items of other comprehensive income.

COnsolidated BALANCE SHEET

FOR THE YEAR ENDED 31 May 2026

			2026		2025
Non-current assets	Note		£000		£000
Property, plant and equipment			6,867		6,783
Intangible assets			5,176		5,435
Deferred taxation			1,676		1,852
Trade and other receivables			5,000		11,191
			18,719		25,261
Current assets
Inventories			218,296		223,892
Trade and other receivables			37,551		41,096
Cash and cash equivalents			24,154		9,388
			280,001		274,376
Total assets			298,720		299,637
Current liabilities
Trade and other payables			59,734		55,735
Short-term bank borrowings	8		-		30,282
Deferred consideration	9		20,674		7,469
Short-term obligations under lease liabilities			1,305		1,351
Provisions	11		2,078		1,871
Corporation tax			876		2,752
			84,667		99,460
Non-current liabilities
Trade and other payables			-		1,550
Long-term obligations under lease liabilities			3,627		4,160
Long-term bank borrowings			22,961		-
Deferred taxation			2,267		2,866
Deferred consideration	9		-		14,491
Contingent consideration	10		2,000		2,000
Provisions	11		4,240		3,855
			35,095		28,922
Total liabilities			119,762		128,382
Net assets			178,958		171,255
Equity
Share capital	12		149		149
Share premium	12		78,826		78,744
Retained earnings			99,983		92,362
Equity attributable to owners of the parent company			178,958		171,255

consolidated Statement of Changes in Equity

FOR THE YEAR ENDED 31 MAY 2026

		Share capital	Share premium	Retained earnings	Total
	Note	£000	£000	£000	£000
1 June 2024		148	78,744	79,315	158,207
Issue of shares		1	-	-	1
Total comprehensive income for the year		-	-	14,096	14,096
Share-based payments	12	-	-	139	139
Dividends		-	-	(1,188)	(1,188)
31 May 2025		149	78,744	92,362	171,255
Issue of shares	12	-	82	-	82
Total comprehensive income for the year		-	-	9,423	9,423
Share-based payments	12	-	-	579	579
Dividends	6	-	-	(2,381)	(2,381)
31 May 2026		149	78,826	99,983	178,958

The share capital account records the nominal value of shares issued.

The share premium account records the amount above the nominal value received for shares issued, less share issue costs.

Retained earnings represents accumulated profits less losses, and distributions. Retained earnings also includes share-based payments.

Consolidated Statement of Cash Flows

year to 31 May 2026

		2026		2025
Cash flows generated from operations	Note	£000		£000
Profit for the year - Adjusted for:		9,423		14,096
Exceptional items	5	948		1,032
Taxation charged	4	2,509		4,923
Finance costs		3,640		5,534
Finance income		(732)		(361)
Adjusted operating profit before working capital movement		15,788		25,224
Exceptional items	5	(948)		(1,032)
Gain on disposal of tangible fixed assets		(106)		(140)
Share-based payments	12	579		139
Non-cash movement - discounting		-		899
Amortisation of intangible fixed assets		259		263
Depreciation and impairment of tangible fixed assets		1,933		2,135
Operating cash flows before movements in working capital		17,505		27,488
Decrease in inventories		5,917		19,511
Decrease/(increase) in trade and other receivables		10,211		(20,348)
Increase in trade and other payables		3,034		7,089
Net cash from operations		36,667		33,740
Taxation paid		(4,846)		(3,675)
Net cash inflow from operating activities		31,821		30,065
Investing activities
Purchase of property, plant and equipment		(954)		(156)
Proceeds on disposal of property, plant and equipment		181		244
Interest received		68		140
Net cash (used in)/generated from investing activities		(705)		228
Financing activities
Deferred consideration paid on acquisition of subsidiary	14	(1,608)		(2,857)
Proceeds from issue of shares		82		-
Repayment of bank loans	14	(6,970)		(24,908)
Payment of lease liabilities	14	(1,871)		(2,142)
Dividends paid	6	(2,381)		(1,188)
Interest paid		(3,251)		(5,096)
Net cash outflow from financing activities		(15,999)		(36,191)
Net increase/(decrease) in cash and cash equivalents		15,117		(5,898)
Cash and cash equivalents at beginning of year		9,037		14,935
Cash and cash equivalents at end of year		24,154		9,037

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR TO 31 MAY 2026

1.    Organisation and trading activities

Springfield Properties Plc is incorporated and domiciled in Scotland as a public company limited by shares and operates from its registered office in Alexander Fleming House, 8 Southfield Drive, Elgin, Morayshire, IV30 6GR.

The principal activities are construction and sale of residential properties for private individuals, affordable homes in partnership with third party councils and housing associations and contracting for private rented sector alongside land development and promotion.

2.    Summary of material accounting policies

The material accounting policies adopted and applied in the preparation of the financial statements are set out below. These have been consistently applied to all the years presented unless otherwise stated.

2.1          Basis of accounting

The financial statements of Springfield Properties Plc have been prepared in accordance with UK adopted international accounting standards. The Group has adopted all the standards and amendments to existing standards that are mandatory for accounting periods beginning on 1 June 2025. The financial statements have been prepared under the historical cost convention except for contingent consideration.

The following standards have been issued but have not been applied by the Group in these financial statements. These amendments to standards and interpretations had no significant impact on the financial statements:

·    Amendments to IAS 1 'Classification of liabilities as current or non-current'

·    Amendments to IAS 1 'Classification of liabilities as current or non-current- Deferral of Effective Date'

·    Amendments to IAS 1 'Non-current Liabilities with Covenants'

·    Amendments to IFRS 16 'Lease liability in a sale and leaseback'

·    Amendments to IAS 7 and IFRA 7 'Supplier Finance Arrangements'

The following new standards and amendments to standards have been issued but are not effective for the financial year beginning 1 June 2025 and have not been early adopted:

·    IFRS 18 'Presentation and Disclosure in Financial Statements'

The new standards and amendments to the standards noted above are expected to have no significant impact on the financial statements.

2.2          Basis of consolidation

The consolidated financial statements incorporate those of Springfield Properties Plc and its subsidiaries. Where the Company has control over an investee, it is classified as a subsidiary. The Company controls an investee if all three of the following elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control. Contingent consideration is measured at its fair value at the date of acquisition. Other contingent consideration is remeasured at fair value at each reporting date with subsequent changes in the fair value of the contingent consideration recognised in the consolidated profit and loss account.

All financial statements are made up to 31 May 2026. All intra-Group transactions, balances and unrealised gains on transactions between Group companies are eliminated on consolidation.

2.3.         Functional and presentation currencies

The financial statements are presented in Pound Sterling (£), rounded to the nearest £000, which is also the currency of the primary economic environment in which the Group operates (its functional currency).

2.4.         Going concern

In determining the appropriate basis of preparation of the financial statements, the Directors are required to consider whether the Group can continue to meet its liabilities and other obligations for the foreseeable future.

The Group's business activities, together with factors that the Directors consider are likely to affect its development, financial performance and financial position, are set out in the Strategic Report on pages 8 to 34 of the Group's annual report for the year ended 31 May 2026 ('the 2026 Annual Report').

The material financial and operational risks and uncertainties that may affect the Group's performance

and their mitigation are outlined on pages 17 to 19, and financial risks including liquidity, market, interest and capital risks are outlined in Note 28 to the financial statements in the 2026 Annual Report.

At 31 May 2026, the Group had net bank cash of £1.2m (31 May 2025: net bank debt of £20.9m), which reflects the Group's sustained focus on reducing the debt position and was ahead of the external market forecasts of £10m of net bank debt.

The Group has a revolving credit facility in place until August 2028. The facility limit of £77.5m reduced to £47.5m in August 2026 in line with the Group's strategy. An overdraft facility of £2.5m is in place until August 2027. The combined facilities support working capital and provide headroom to capitalise on opportunities that arise.

In order to support the going concern period to 30 September 2027, the Board-approved budget to May 2027, with a further year added to May 2028, forms the basis of the detail and assessment to confirm the appropriateness of the going concern basis being adopted for the preparation of the 31 May 2026 statutory accounts. 

In addition to the Board budget, two sensitivity scenarios have been prepared reducing private home sales in the year to May 2027 from the original Board-approved budget.

Under all three scenarios, the Group is able to operate within its bank facilities and covenants.

The Group continues to retain discipline around controlling build spend on sites and continues to adopt a cautious approach to new site openings. The profitable land sales in the year again demonstrate the ability to generate cash quickly - there remains strong interest in the Group's land bank should it wish to make further sales.

Accordingly, the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis. The Directors are confident that the Group has adequate resources to continue in operational existence for the foreseeable future and are satisfied that the Group will generate sufficient cash to meet its liabilities as and when they fall due for a period of 12 months from the signing of the annual report and financial statements for the year ended 31 May 2026.

2.5.         Revenue and profit recognition

Sale of private housing

Revenue on private home sales is recognised at a point in time and the performance obligation is the transfer of the completed property to the customer on legal completion and receipt of cash. Revenue is measured at the fair value of the consideration received net of VAT and trade discounts.

The Group's site valuation process determines the forecast profit margin for each site. The valuation process acts as a method of allocating land costs and construction costs of a development to each individual plot based on the overall development margin and drives the recognition of costs in the profit and loss account as each plot is sold. Any changes in the forecast profit margin of a site from changes in sales prices or costs to complete is recognised across all homes sold in both the current period and future periods.

The Group provides standard warranties over completed homes, including snagging and defects rectification. These are assurance type warranties and are not separate performance obligations under IFRS 15. A provision is recognised on completion of a development based on the estimated cost of meeting these obligations, taking account of historical claims experience and known development specific issues.

Revenue on contracts recognised over time - affordable housing

Revenue from affordable housing contracts is recognised over time as development progresses as the construction activity enhances an asset controlled by the customer.

Where the outcome of a contract can be estimated reliably, the amount of revenue recognised depends on the stage of completion. This is based on the development costs incurred as a proportion of the total expected development costs (the input method).

Contractual cashflows are determined by independent surveys of work performed to date. These do not always align with the revenue recognised on the underlying performance obligation and any cashflows received that are in excess of the revenue recognised are included as contract liabilities. Where the cashflows received are less than revenue recognised the difference is included within contract assets.

Revenues derived from variations on contracts are recognised only when they can be reliably measured. Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.

The Group provides standard warranties over completed homes, including snagging and defects rectification. These are assurance type warranties and are not separate performance obligations under IFRS 15. A provision is recognised on completion of a development based on the estimated cost of meeting these obligations, taking account of historical claims experience and known development specific issues.

Where the outcome of a contract cannot be estimated reliably, revenue from construction contracts is generated from affordable housing contracts and is recognised based on the measured value of work completed as construction progresses. The measured value of work is based on certified valuations that consider the stage of completion of contracts.

Contract housing revenue

Revenue from contract housing is recognised monthly based on an agreed markup of cost incurred.

Costs are measured and valued monthly by quantity surveyors before invoices are issued to the customer.

Land sales

Revenue from land sales is recognised on legal completion based on fair value at transfer. Where revenue receipts are deferred into a future period, a discounting adjustment is made to the revenue recognised, with the discount unwinding over the deferred payment period.

Plant hire revenue

Plant hire revenue represents amounts receivable for the short-term hire of plant and equipment. Revenue is recognised when the hire period commences and the customer benefits from the use of the plant and equipment and is recognised evenly throughout the hire period.

2.6.         Net finance costs

Finance costs comprise interest payable on bank loans and the unwinding of the discount from nominal to present day value of provisions, discounted deferred consideration on acquisitions and lease liabilities. Finance costs are capitalised when they are directly attributable to the acquisition, contribution or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Finance income comprises the unwinding of the discount from nominal to present day value of shared equity loan receivables and deferred land sales income. Interest income and interest payable is recognised in the profit and loss account on an accruals basis.

2.7.         Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date.

Deferred tax

Deferred tax assets and liabilities are recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.  The following temporary differences are not provided for: goodwill, the initial recognition of assets and liabilities that affects neither the tax profit nor the accounting profit, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised, or the deferred tax liability is settled.

A deferred tax asset is recognised for unused tax losses and unused tax credits only if it is probable that future taxable amounts will arise against which those temporary differences and losses may be utilised.

2.8.         Exceptional items

Exceptional items are those material items which, by virtue of their size or incidence, are presented separately in the profit and loss account to enable a full understanding of the Group's financial performance. Transactions that may give rise to exceptional items include transactions relating to acquisitions and costs relating to changes in share capital structure as well as redundancy and restructuring costs.

2.9.         Property, plant and equipment

Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Buildings                                   - 2% and 5% straight line

Plant and machinery                 - 2-10 years straight line

Fixtures, fittings & equipment   - 2-5 years straight line

Motor vehicles                           - 4-5 years straight line

Right-of-use leased assets       - over the lease term, straight line with no residual value

Land is not depreciated

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is credited or charged to the profit and loss account.

2.10.      Intangible fixed assets

Intangible assets comprise market-related assets (e.g. trademarks, website developments and brands) and goodwill on acquisition.

Market-related assets

Trademark assets in relation to Springfield Properties Plc are expected to have an indefinite useful life; however, impairment reviews are performed annually. Any impairment losses or reversals of impairment losses are recognised immediately in the profit and loss account.

The brand asset in relation to Tulloch Homes has a 15 year useful life and amortisation is charged on a straight-line basis.

Goodwill on acquisition

Goodwill on acquisitions of subsidiaries or businesses represents the excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the net identifiable assets acquired.

Impairment reviews are performed annually with any impairment losses being recognised immediately in the profit and loss account.

2.11.      Fixed asset investments

Interests in subsidiaries are initially measured at cost, comprising purchase price and directly-attributable transaction costs incurred as part of the acquisition, and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses are recognised immediately in the profit and loss account.

2.12.      Impairment of fixed assets

At each reporting end date, the Group reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value-in-use. Any impairment loss and reversal of losses are recognised in the profit and loss account.

2.13.      Inventories and work in progress

Property, including land held under development, acquired or being constructed for sale in the ordinary course of business, rather than to be held for rental or capital appreciation, is held as stock and is measured at the lower of cost and net realisable value.

Cost comprises the invoiced value of the goods purchased and includes attributable direct costs, labour and overheads and where possible and directly attributable to site, finance costs will be included.

Net realisable value is the estimated selling price in the ordinary course of the business, based on market prices at the reporting date and discounted for the time value of money if material, less estimated costs of completion and the estimated costs necessary to make the sale. Any excess of the carrying amount of stocks over its net realisable value is recognised as an impairment loss in the profit and loss account.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit and loss account.

Where sites are 'secured' via option agreements, these sites are only included as stock when the agreement becomes unconditional.

Options included as part of stock are stated at the lower of cost and net realisable value.

2.14.      Financial instruments

Financial instruments are recognised in the balance sheet when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Financial assets at amortised cost

Financial assets are recognised initially at cost. Subsequent to initial recognition they are measured at amortised cost using the effective interest rate method, less any impairment losses.

Loans outside the Group are valued at the recoverable amount and a market rate of interest is charged.

Impairment of financial assets

The Group recognises an allowance for expected credit losses for all debt instruments not held at fair value through the profit and loss account. Expected credit losses are based on the difference between the contracted cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate.

For trade receivables and, in the Parent Company, intercompany receivables, the Group applies a simplified approach in calculating expected credit losses. The Group does not track changes in credit risk but instead recognises a loss allowance based on lifetime expected credit losses at each reporting date.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities

All of the Group's financial liabilities are measured at fair value through profit or loss or amortised cost.

Other financial liabilities

Other non-derivative financial liabilities are initially measured at fair value. Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest rate method.

The effective interest rate method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability to the net carrying amount on initial recognition.

Derecognition of other financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

2.15.      Deferred and contingent consideration

Deferred consideration payments are initially recognised at fair value at the date of acquisition which is based on the timing of the cash outflows and an appropriate discount rate. It is subsequently measured at fair value through profit or loss.

Contingent consideration is based on an assessment of the likelihood of the payment becoming due. It is initially recognised at fair value at the date of acquisition and subsequently measured at fair value through profit or loss.

2.16.      Leases

All leases are accounted for by recognising a right-of-use asset and a lease liability except for leases of low value assets (less than £5,000) and leases with a duration of 12 months or less.

Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the Group's incremental borrowing rate at commencement of the lease.

Right-of-use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received. Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease. Right-of-use assets comprise the Group's existing premises in Elgin, Larbert, Inverness and Glasgow along with certain items of office equipment and motor vehicles.

2.17.      Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant and recognised as an expense over the vesting period. The amount recognised as an expense is adjusted for leavers to the scheme. Fair value is measured by use of a relevant pricing model.

2.18.      Provisions

Provisions include dilapidations to cover the Group's leased properties with an upfront liability recognised. Maintenance provisions relate to the costs to come on developments where the final homes have been handed over.

3.    Segmental reporting

The Group has only one reportable operating segment, being housebuilding within the UK, under the control of the Board. The Board has been identified as the Chief Operating Decision Maker as defined under IFRS 8 Operating Segments.

The Board regularly reviews the Group's profit and loss account and balance sheet position at both a divisional and consolidated level. Each of these divisions is an operating segment as defined by IFRS 8 in that the Directors assess performance and allocate resources at this level. The divisions have been aggregated into one reporting segment on the basis that they share similar economic characteristics.  In addition, each division builds and delivers residential homes, uses consistent methods of construction, sells homes to both private customers and housing associations, have a comparable sales process and operations, and are all subject to the same macroeconomic factors including mortgage availability and Government policy.

As the Group operates solely in the United Kingdom segment reporting by geographical region is not required.

		2026		2025
Revenue		£000		£000
Private housing		164,960		155,776
Affordable housing		54,334		49,380
Contract housing		5,098		10,976
Land sales		14,123		60,507
Other		5,184		3,918
Total revenue		243,699		280,557

Gross profit		40,046		52,122
Administrative expenses		(25,391)		(27,609)
Exceptional items		(948)		(1,032)
Other operating income		1,133		711
Finance income		732		361
Finance expenses		(3,640)		(5,534)
Profit before tax		11,932		19,019
Taxation		(2,509)		(4,923)
Profit for the period		9,423		14,096

4.    Taxation

	2026		2025
	£000		£000
Current tax
UK corporation tax on profits for the current period	3,392		4,952
Adjustments in respect of prior periods	(460)		127
	2,932		5,079
Deferred tax
Origination and reversal of timing differences	(510)		(77)
Utilisation of losses	10		-
Adjustments in respect of prior periods	77		(79)
	(423)		(156)
	2,509		4,923

The charge for the year can be reconciled to the standard rate of tax as follows:

	2026		2025
	£000		£000
Profit before tax	11,932		19,019
Tax at the UK corporation tax rate of 25% (2025: 25%)	2,983		4,755
Effects of:
Tax effect of expenses that are not deductible in determining taxable profit	251		383
Adjustments in respect of prior years	(460)		127
Depreciation on assets not qualifying for tax allowances	22		16
Deferred tax adjustments in respect of prior years	77		(79)
Temporary difference not recognised	(118)		(226)
Other timing differences	(73)		(89)
Income not taxable	(173)		-
Adjust deferred tax to closing average rate	-		(1)
Residential property tax	-		37
Tax charge for period	2,509		4,923

5.    Exceptional items

	2026		2025
	£000		£000
Legal fees	434		500
Redundancy costs	514		532
	948		1,032

6.    Dividends

For the year to 31 May 2026, a final dividend of 3p pence per share is proposed to be paid. No interim dividend was paid during the year.

In respect of the prior year, a final dividend of 2p per share was paid, which amounted to £2,380,848.

7.    Earnings per share

The basic earnings per share is based on the profit for the year divided by the weighted average number of shares in issue during the year. The weighted average number of ordinary shares for the year ended 31 May 2026 assumes that all shares have been included in the computation based on the weighted average number of days since issue.

In respect of diluted earnings per share, the weighted average is calculated by adjusting for all outstanding share options that are potentially dilutive (i.e. where the exercise price is less than the average market price of the shares during the year).

	2026		2025
	£000		£000
Profit for the year attributable to owners of the Company	9,423		14,096
Adjusted for the impact of tax-adjusted exceptional costs in the year	711		945
Adjusted earnings	10,134		15,041
Weighted average number of ordinary shares for the purpose of basic earnings per share	119,092,512		118,839,353
Effect of dilutive potential shares: share options	7,190,676		6,082,522
Weighted average number of ordinary shares for the purpose of diluted earnings per share	126,283,188		124,921,875
Earnings per ordinary share
Basic earnings on profit for the year	7.91p		11.86p
Diluted earnings on profit for the year	7.46p		11.28p
Adjusted earnings per ordinary share(1)
Basic earnings on profit for the year	8.51p		12.66p
Diluted earnings on profit for the year	8.02p		12.04p

(1)      Adjusted earnings is presented as an additional performance measure and is stated before exceptional items and is used in adjusted EPS calculation.

8.    Bank borrowings

		2026		2025
Secured borrowings:		£000		£000
Bank loans		22,961		29,931
Bank overdrafts		-		351
		22,961		30,282
Less: payable within one year		-		(30,282)
Payable after one year		22,961		-

The bank loan comprises a revolving credit facility that is in place until August 2028. The facility limit of £77.5m reduced to £47.5m in August 2026. The facility attracts an interest rate of 2.1% per annum above Bank of England SONIA (Sterling overnight index average response rate) and is secured over certain of the Group's properties, with a 31 May 2026 work-in-progress value of £81.2m.

At 31 May 2026, the Group had available £54.5m (2025: £57.5m) of undrawn committed borrowing facilities.

At 31 May 2026, the Group had an overdraft facility of £2.5m (2025: £2.5m). In August 2026, the overdraft facility was renewed at a level of £2.5m.

The Group's lender has a floating charge over the assets of the Company and of its subsidiaries.

9.    Deferred consideration

As part of acquiring the Scottish housebuilding business of Mactaggart & Mickel Group Limited, there was a further £30,781,108 of deferred consideration payable. This was payable quarterly in arrears as homes were sold starting from August 2023. There was a minimum annual payment of £7,695,277, subject to a one-off 12-month payment holiday, which was taken in the prior year ended 31 May 2025. The outstanding discounted amount payable at the year-end was £20,673,554 (2025: £21,960,440).

		2026			2025
			£000		£000
Acquisition of the housebuilding business of Mactaggart & Mickel Group Limited			20,674		21,960
			20,674		21,960
			2026		2025
			£000		£000
Deferred consideration < 1 year			20,674		7,469
Deferred consideration > 1 year			-		14,491
			20,674		21,960

10.  Contingent consideration

As part of the purchase agreement of Dawn Homes Holdings Limited there was a further £2,500,000 payable for an area of land if (i) the Group make a planning application when it reasonably believes the council will recommend approval; or (ii) it is zoned by the council. The Directors have assessed the likelihood of the land being zoned and have included a liability of £2,000,000 based on 80% probability. The outstanding amount payable at the period end included within liabilities is £2,000,000 (2025: £2,000,000). The remaining £500,000 (20% on the £2,500,000 still to be paid) has been treated as a contingent liability due to the uncertainty over the future payment.

	2026		2025
	£000		£000
Acquisition of Dawn Homes Holdings Limited	2,000		2,000
	2,000		2,000

11.  Provisions

Dilapidation provisions are included for all rented buildings within the Group. Maintenance provisions relate to costs to come on developments where the final homes have been handed over. The amounts are based on prior experience and current knowledge and there is no material uncertainty in the timing or amount.

	2026		2025
	£000		£000
Dilapidation provision	113		113
Maintenance provision	6,205		5,613
	6,318		5,726

The movement in the provision accounts are as follows:

	Dilapidation			Maintenance		Total
	£000			£000		£000
Balance as at 1 June 2025	113			5,613		5,726
Additional provision	-			4,243		4,243
Amount utilised		-		(3,229)		(3,229)
Amount released		-		(422)		(422)
Balance as at 31 May 2026		113		6,205		6,318

	2026		2025
	£000		£000
Provisions < 1 year	2,078		1,871
Provisions > 1 year	4,240		3,855
	6,318		5,726

12.  Share capital

The Group has one class of ordinary share that carry full voting rights but no right to fixed income or repayment of capital. The share capital account records the nominal value of shares issued. The share premium account records the amount above the nominal value received for shares sold, less share issue costs.

Ordinary shares of 0.125p - authorised, allotted, called up and fully paid	Number of shares	Share capital £000	Share premium £000
At 1 June 2025	119,042,405	149	78,744
Share issue	379,425	-	82
At 31 May 2026	119,421,830	149	78,826

During the year, 379,425 shares (2025: 373,281) were issued in satisfaction of share options exercised for a consideration of £82,544 (2025: £467).

Share-based payments

During the year, the Group operated four share-based schemes.

Share-related share options scheme

The Group operates a Savings related Share Option Scheme, which is open to all employees. Grant options were made in October 2024 and become exercisable after 3 years, subject to employees remaining in continuous employment. Employees enter into a savings contract with the Equiniti Limited who administers the scheme. The options are granted at a 10% discount of the share price at the date of grant and lapse if not exercised within six months of maturity. Special provisions apply to employees who leave their employment for ill health, redundancy or retirement.

Long-Term Incentive Plan (LTIP)

The Company operates an LTIP for senior management to retain and align their interests with shareholders. The LTIP is split into a CSOP, ESOP and Performance Share Plan ("PSP") scheme. The PSP was introduced during the prior year and under which key executives could be granted conditional "whole share" awards (i.e. rights to acquire shares where the individual is required to pay a zero or negligible exercise price), the vesting of which is normally conditional on both continued employment and the satisfaction of specified performance measures.

Fair value of share options

Options are valued using the Black-Scholes option-pricing model. No performance conditions are included in the fair value calculation.

CSOP
		2026		2025
		Number of shares	Weighted average exercise price (pence)	Number of shares	Weighted average exercise price (pence)
Options at the beginning of the year		549,299	115.00	583,638	114.64
Exercised during the year		(73,777)	106.00	-	-
Lapsed during the year		(49,832)	131.28	(34,339)	108.90
Options at the year end		425,690	114.65	549,299	115.00

Share option	Grant Price (p)	Number of shares at year end	Exercise price (p)	Vesting period (years)
CSOP - 16th October 2017	106.00	205,743	106.00	3
CSOP - 8th December 2017	111.00	27,027	111.00	3
CSOP - 3rd May 2018	134.00	22,388	134.00	3
CSOP - 16th May 2018	134.00	53,713	134.00	3
CSOP - 1st October 2018	122.50	80,328	122.50	3
CSOP - 4th June 2019	108.50	36,491	108.50	3

		2026		2025
ESOP		Number of shares	Weighted average exercise price (pence)	Number of shares	Weighted average exercise price (pence)
Options at the start of the year		1,588,944	118.78	1,683,481	118.71
Exercised during the year		(3,397)	106.00	-	-
Lapsed during the year		(265,073)	117.21	(94,537)	117.56
Options at the year end		1,320,474	119.12	1,588,944	118.78

Share option	Grant Price (p)	Number of shares at year end	Exercise price (p)	Vesting period (years)
ESOP - 16th October 2017	106.00	328,827	106.00	3
ESOP - 3rd May 2018	134.00	72,761	134.00	3
ESOP - 16th May 2018	134.00	11,157	134.00	3
ESOP - 1st October 2018	122.50	907,729	122.50	3

		2026		2025
SAYE		Number of shares	Weighted average exercise price (pence)	Number of shares	Weighted average exercise price (pence)
Options at the start of the year		1,280,093	97.00	424,785	130.50
Granted during the year		-	-	1,489,050	97.00
Exercised during the year		(373)	97.00	-	-
Lapsed during the year		(206,104)	97.00	(633,742)	119.45
Options at the year end		1,073,616	97.00	1,280,093	97.00

Share option	Grant Price (p)	Number of shares at year end	Exercise price (p)	Vesting period (years)
SAYE - 1st November 2024	108.00	1,073,616	97.00	3

		2026		2025
PSP		Number of shares	Weighted average exercise price (pence)	Number of shares	Weighted average exercise price (pence)
Options at start of the year		4,138,401	0.13	4,385,999	0.13
Granted during the year		959,443	0.13	1,330,430	0.13
Exercised during the year		(301,878)	0.13	(373,281)	0.13
Lapsed during the year		(2,367)	0.13	(1,204,747)	0.13
Options at the year end		4,793,599	0.13	4,138,401	0.13

Share option	Grant Price (p)	Number of shares at year end	Exercise price (p)	Vesting Period (years)
PSP - 21st December 2021	0.13	8,464	0.13	3
PSP - 28th March 2023	0.13	477,009	0.13	3
PSP - 30th October 2023	0.13	2,090,047	0.13	3
PSP- 28th October 2024	0.13	1,258,636	0.13	3
PSP - 28th October 2025	0.13	959,443	0.13	3

Inputs used to determine fair value of options

			CSOP	ESOP	SAYE	PSP
Expected volatility			29.00%	29.00%	13.87%	5.63%
Risk-free interest rate			0.49%	0.49%	2.18%	-0.04%
Expected dividends			-	-	-	2.0%
Fair value of options			34.00p	39.00p	17.26p	105.35p
Charge per option			32.00p	37.00p	15.51p	105.35p

Expected volatility was calculated using historical share price information of the housebuilding sector for the CSOP and ESOP and the 12-month average Springfield share price prior to the grant of the PSP options.

CSOP - 73,777 (2025 - nil) of options were exercised during the year and 425,690 (2025: 549,299) shares were exercisable. Post vested weighted contractual life 1.4 years.

ESOP - 3,397 (2025 - nil) of options were exercised during the year and 1,320,474 (2025: 1,588,944) shares were exercisable. Post vested weighted contractual life 2.1 years.

SAYE - 373 (2025 - nil) of options were exercised during the year and nil (2025: nil) shares were exercisable. Post vested weighted contractual life 1.5 years.

PSP - 301,878 (2025 - 373,281) of options were exercised during the year and 485,473 (2025: 46,393) shares were exercisable. Post vested weighted contractual life 7.0 years.

Charge for share-based incentive schemes

The total charge for the year relating to employee share-based plans was £579k (2025: £139k), all of which related to equity-settled share-based payment transactions.

13.  Transactions with related parties

Other related parties include transactions with retirement schemes in which Directors and close family members of key management personnel are beneficiaries. During the year, dividends totalling £529k (2025: £286k) were paid to key management personnel (Board of Directors and the members of the Operational Board). Dividends were paid to Board of Directors as follows:

Name of Director	2026 £000		2025 £000
Mr Sandy Adam	509		276
Mr Innes Smith	20		10
	529		286

The remuneration of the key management personnel (Plc Directors and Group Directors) of Springfield Properties Plc is set out below in aggregate for each of the categories specified in IAS 24 - Related Party Disclosures:

	2026 £000		2025 £000
Short-term employee benefits	4,579		4,874
Post employment benefits	429		281
Share-based payments	533		110
	5,541		5,265

During the year, the Group entered into the following transactions with related parties:

	Sale of goods				Purchase of goods
	2026		2025		2026		2025
	£000		£000		£000		£000
Bertha Park Limited(1)	5,241		11,258		-		-
Other entities that key management personnel have control, significant influence or hold a material interest in	23		64		4		16
Key management personnel	9		13		-		-
Other related parties	3		13		2,008		2,518
	5,276		11,348		2,012		2,534

Sales to related parties represent those undertaken in the ordinary course of business.

						Rent paid
					2026			2025
					£000			£000
Entities that key management personnel have control, significant influence or hold a material interest in					187			187
Other related parties					105			103
					292			290

	2026		2025
	£000		£000
Interest received:
Entities that key management personnel have control, significant influence or hold a material interest in (short-term)	125		125
	125		125

The following amounts were outstanding at the reporting end date:

	2026		2025
	£000		£000
Amounts receivable:
Bertha Park Limited(1)	8,483		9,394
Other entities that key management personnel have control, significant influence or hold a material interest in (short-term)	2		2
Key management personnel	1		4
Other related parties	1		2
	8,487		9,402

	2026		2025
	£000		£000
Accounts payable:
Other related parties	1,127		2,928
	1,127		2,928

Amounts owed to/from related parties are included within creditors and debtors respectively at the year-end. No security has been provided on any balances.

Transactions between Group companies have been eliminated on consolidation and are not disclosed in this note.

(1) Bertha Park Limited is a Company in which Sandy Adam and Innes Smith are Directors. During the year, the Group made sales to Bertha Park Limited of £5,241k (2025: £11,258k) in relation to a build contract. At the year-end, £3,483k (2025: £4,394k) is included in trade debtors and included within other debtors is a loan of £5,000k (2025: £5,000k).

14.  Analysis of net debt

The analysis of net debt is as follows:

	2026		2025
	£000		£000
Cash in hand and bank	24,154		9,388
Bank borrowings - loan	(22,961)		(29,931)
Bank borrowings - overdraft	-		(351)
Net bank cash/(debt)	1,193		(20,894)
Lease liability	(4,932)		(5,511)
Net debt	(3,739)		(26,405)
Deferred consideration	(20,674)		(21,960)
	(24,413)		(48,365)

Reconciliation of net cashflow to movement in net debt is as follows:

		At 1 June 2025	New leases	Cashflow	Fair value	At 31 May 2026
		£000	£000	£000	£000	£000
Cash and cash equivalents		9,388	-	14,766	-	24,154
Bank borrowings - loan		(29,931)	-	6,970	-	(22,961)
Bank borrowings - overdraft		(351)	-	351	-	-
Leases		(5,511)	(966)	1,871	(326)	(4,932)
Net debt		(26,405)	(966)	23,958	(326)	(3,739)
Deferred consideration		(21,960)	-	1,608	(322)	(20,674)
		(48,365)	(966)	25,566	(648)	(24,413)

		At 1 June 2024	New leases	Cashflow	Fair value	At 31 May 2025
		£000	£000	£000	£000	£000
Cash and cash equivalents		14,935	-	(5,547)	-	9,388
Bank borrowings - loan		(54,839)	-	24,908	-	(29,931)
Bank borrowings - overdraft		-	-	(351)	-	(351)
Leases		(5,538)	(1,705)	2,142	(410)	(5,511)
Net debt		(45,442)	(1,705)	21,152	(410)	(26,405)
Deferred consideration		(24,462)	-	2,857	(355)	(21,960)
		(69,904)	(1,705)	24,009	(765)	(48,365)

 

END