Springfield’s H1 update highlights a robust performance. The improved private reservation rate has been sustained through H1, with selling prices also resilient. Affordable contracts have progressed well at improved, double digit gross margins and whilst there has been a hiatus in new contract awards, a much-improved funding provision in the Budget last week should support new contract awards in H2 and beyond. As usual, we anticipate an H2 weighting but management remains confident in the outlook and we make no changes to our forecasts. We continue to see significant value in the shares, underpinned by the significant and well-located land bank. The shares trade on a significant, 34% discount to NAV vs. an average peer group rating of 1.0x. We target a May ‘25 P/B rating of 1.25x to drive our 160p TP and remain at Buy.
