Proactive Investors - Springfield Properties PLC (LON:SPRSP) saw its shares fall some 15% lower in Monday’s early deals, to 76.59p, after releasing a predictably challenging trading update.
The Scottish homebuilder, in a statement, reported that rising interest rates and economic uncertainty have impacted reservations for its private housing.
Nevertheless, Springfield noted that it still expects to report an increase in revenue for the first half of 2023, thanks to the Scottish missive system which ensures customers are contracted into house purchases earlier in the new-build process.
Springfield warned, however, that industry-wide inflationary pressures in materials and labour have become more acute, and it expects to report profit before tax for financial year 2023 below that of 2022.
The company said it will provide further details in its interim results, expected to be published in February 2023.