Elgin-based Springfield Properties, which is building a number of new communities throughout Scotland, said it has signed a new contract worth £15.3 million with Inverness-based Highland Housing Alliance (HHA) for the delivery of affordable housing.

“The contract includes an initial bulk sale of housing, followed by a design and build aspect,” said Springfield.

“The group will receive £4.1m for a bulk sale of housing, which is scheduled to complete during the current financial year.

“The design and build phase, which is worth £11.2m, is due to commence in the coming weeks, with the majority of the revenue to be recognised in the group’s next financial year.”

Springfield’s CEO said it has signed contracts worth £40 million with local housing authorities and other affordable housing providers in the last eight months.

Springfield shares rose about 6% to 83p to give the Elgin firm a current stock market value of roughly £100 million.

Springfield Properties CEO Innes Smith said: “Since reengaging with affordable housing providers, we have been greatly encouraged by the interest that we are receiving.

“Within the last eight months, we have signed contracts worth c. £40m with local housing authorities and other affordable housing providers.

“Alongside the design and build contract, we are pleased to have this opportunity to deliver a bulk sale that will support our overall sales rates as well as our focus on maximising cash generation.

“As well as contributing towards the Scottish Government’s ambitious affordable housing targets, these homes will help meet the surge in demand for housing in the highlands with the Inverness and Cromarty Firth Green Freeport expected to bring 10,000 new jobs to the area.

“Our strong land-holding across the highlands means we are well placed to assist with housing delivery and we look forward to working with HHA to provide these much-needed homes.”