Springfield’s year-end trading update confirms a positive conclusion to FY24 with profit and cash generation both ahead of forecast despite the challenging market backdrop. The key focus for the year was debt reduction and Springfield has once again proven its ability to reduce debt rapidly in response to changing market conditions. Bank debt reduced by over £20m during the year to c.£40m, well below management’s original £55m target.
Current trading is steady, and Springfield is well positioned to capitalise on any improvement in market conditions. We make no changes to our prudent FY25 forecasts and consider the shares attractively valued, noting a 33% valuation discount to peers.