COVID-19 Update

RNS Number : 2993H

Springfield Properties PLC

24 March 2020

 

24 March 2020

Springfield Properties plc

("Springfield" or the "Group")

COVID-19 Update

Response to Scottish Government statement and withdrawal of dividend

Springfield Properties plc (AIM: SPR), a leading housebuilder in Scotland offering private and affordable housing, provides the following update regarding COVID-19.

The health and safety of Springfield employees, customers and the communities in which the Group operates is of paramount importance to the Board and management team. In response to the COVID-19 outbreak, Springfield has been following government guidelines and advice and has implemented a number of measures to protect the wellbeing of its employees and other stakeholders whilst ensuring business continuity as far as possible.

As noted in the Group's interim financial results announced on 27 February 2020, Springfield entered the second half of 2019/20 with a strong order book of contracted revenue for the period to 31 May 2020 and was experiencing good growth across the business. The COVID-19 outbreak has not negatively impacted the Group's completions or reservations to date. However, the COVID-19 situation is rapidly evolving and the Group notes the statement made by First Minister Nicola Sturgeon on 23 March 2020 advising the closing of building sites across Scotland. Further guidance is expected to be given by the Scottish Government on this matter and the Group will update the market in due course.   

Net debt as of 30 November 2019 was £56.0m. The Group has a £67m credit facility with Bank of Scotland, with whom it has an excellent relationship and has maintained a very constructive dialogue over the past few weeks regarding the bank's support and availability of additional funding if required.

While the Group maintains a strong financial position, given the rising level of uncertainty as to how the situation will develop, alongside other measures that the Group intends to take to preserve its cash position, the Board has decided to withdraw the proposed interim dividend of 1.4 pence per share (amounting to a saving of £1.4m), announced on 27 February 2020. The interim dividend will therefore not be paid on 26 March 2020 as previously scheduled. The Board recognises the importance of the dividend to shareholders, but believes that this is an appropriate and prudent measure to preserve liquidity in these uncertain times. The Board will consider the quantum of any final dividend for 2019/20 in light of the position and outlook of the Group at that time.

Enquiries

Springfield Properties
Sandy Adam, Executive Chairman Innes Smith, Chief Executive Officer	[phone]
N+1 Singer
Shaun Dobson, James Moat (Corporate Finance) Rachel Hayes (Corporate Broking)	[phone]
Luther Pendragon
Harry Chathli, Claire Norbury, Alexis Gore, Joe Quinlan	[phone]

 

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