Scottish housebuilder Springfield Properties is seeking to raise up to £25m for a float on the Alternative Investment Market (AIM).
The company says it will use the cash to fund its proposed development of five new villages around Scotland.
The firm recently posted pre-tax profits of £6.7m for the year to the end of May, up 31% on the previous 12 months. Its revenues leapt by 22% to a company record of £111m in the same period.
By the end of August, the company had a secured land bank of approximately 10,500 plots around Scotland, of which more than 40% have planning permission, equating, it says, to around 17 years of development at current activity levels.
With its unallocated land bank included, the total is more than 12,000 plots, with a gross development value of more than £2bn. The company is currently operating on 29 developments and has another 33 planned sites.
Sandy Adam, executive chairman of Springfield, said: “Throughout our history, Springfield’s strategies have achieved our aim of steady growth, doubling the company in size every five years. Our turnover exceeded £100 million for the first time this year and now we employ around 500 people. This IPO is the next step in our growth.
“Raising these funds is part of our strategy to secure ongoing growth at the same rate. The new funding will enable us to invest in the infrastructure of five new Villages in Scotland, and in existing sites, accelerating the delivery of new homes, private and affordable, in new communities.
“Scotland needs more homes countrywide and Springfield is poised to play a significant part in delivering these homes for private individuals and across all tenures in the affordable and social housing sector.”
Springfield operates through two divisions – private housing and affordable. In its last financial year the firm built 437 private houses, with an average selling price (ASP) of £198,000 and 183 affordable homes, with an ASP of approximately £127,000.
Nplus1 Singer Advisory LLP is acting as nominated adviser and broker to the group.
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