Turnover up 32% to £44.3 million
Springfield Properties has reported a surge in turnover and pre-tax profits for the year to May 31 2012.
Accounts filed by the Elgin-based company with Companies House show turnover rose 32 per cent on the previous year, from £40.5 million to £53.4 million.
However cost of sales for the year also rose by 31 per cent, from £33.7 million the previous year to £44.3 million.
Pre-tax profits for the year rose more than 56 per cent to £3.94 million.
Springfield agreed a £49 million deal in July 2011 to acquire eight Scottish sites from housebuilder Redrow, structured as a £5 million deal on completion with the remaining £44 million to be paid as developments are sold in the next three years.
The deal gave Springfield eight sites which already have planning permission planning permission as well as Redrow's Scottish headquarters in Falkirk, and 60 Redrow staff were also transferred over to Springfield as part of the deal.
As a result of that deal Springfield now has 30 sites across Scotland and a development pipeline of around 500 new homes per year.
Springfield notes in its latest full-year accounts its total number of staff in construction had dropped to 178 by the year end compared with 189 the previous year.
A note in the new accounts filed with Companies House states: “Under a contract agreement with Redrow PLC the company has call put options in place for the purchase of sites for development to the value of £32,032,350.”
A call put option gives the buyer the right, but not an obligation to buy or sell an underlying asset at a pre-determined price.
Latest annual accounts from Springfield show net debt at the year end rose from £5.51 million last year to £6.57 million.
The value of work in progress stood at £26.7 million at the year end, up from £22.6 million the previous year.
Springfield has also noted in its accounts it has entered into a scheme with HM Revenues and Customs (HMRC) to be part of a representative sample of companies which have used employee benefit trusts (EBT's).
Employee Benefit Trusts are described by HMRC as being arrangements which “seek to minimise the Income Tax and National Insurance charge on remuneration to employees and directors and may also generate a claim for Corporation Tax deductions for payments into the trust.”
HMRC adds the Finance Bill 2011 “introduced new legislation to put beyond doubt that such arrangements or schemes do not work.”.
Springfield admits to having “contributed amounts to EBT's” but adds: “The company has taken full advice prior to implementing the EBT's and is confident that any review by HMRC will not result in any additional taxation becoming payable".
The note adds: “It is the view of the directors that the timing and likelihood of any liability crystallising is sufficiently uncertain that, whilst we draw attention to it, we do not believe that any provision should be made in the financial statements.”
Springfield notes at the year end the company's shareholder fund stood at £14.36 million, “including distributable profits of £12.22 million”.