Shares of Elgin-based house builder Springfield Properties plc rose as much as 10% on Monday after the company published results for the six months ended November 30, 2024, showing profit before tax up 192% and the firm said it expects to report full-year profit “significantly ahead of market expectations.”

Springfield also said it signed an agreement with Barratt Redrow plc for the profitable sale of 2,480 plots of undeveloped land with planning consent across six sites for £64.2 million.

“As a result of the land sale, the group expects to report profit for FY 2025 significantly ahead of market expectations …” said Springfield.

Springfield shares have now risen about 40% over the past 12 months to around £1.09 to give the firm a stock market vaue of roughly £130 million.

Scotland’s only listed house builder said proceeds from the land sale will be received over four years and will be used to accelerate the removal of the group’s outstanding bank debt and “to capitalise on the significant growth opportunities emerging in the North of Scotland.”

In addition, Springfield and Barratt have entered into non-binding discussions regarding the possible sale of additional future land holdings on a number of other sites.

“The land and the prospective land is from the group’s future land pipeline and is primarily located across Central Scotland,” said Springfield.

“Following the land sale, the group will continue to have a large high quality land bank, providing over nine years of activity (based on owned and contracted land), and will continue to operate in Central Scotland, including delivering homes at the Bertha Park and Dykes of Gray villages.

‘The land sale will complete by 31 May 2025, with the group receiving the consideration of £64.2m in cash in four tranches over the next four years. As a result, the group expects to reach a net cash position in FY 2027.

“The land sale only entails the transfer of undeveloped land. No employees or other assets are being transferred as a result of the land sale.”

Springfield continued: “Following the land sale, the group’s strategic growth focus will be on opportunities in the North of Scotland where the group is uniquely placed to capitalise on the substantial need for new housing to cater for the high population and economic growth expectations in the region.

“This is being driven by the UK Government-financed green infrastructure development in the North of Scotland. Scottish and Southern Electricity Networks (SSEN) are investing £31bn into upgrading the electricity network in the region and the project will require around 5,000 workers at its peak in 2027.

“In addition, the Inverness and Cromarty Firth Green Freeport is expected to create more than 10,000 jobs locally with new investment of over £3bn. The group has commenced discussions with key stakeholders about how to meet the demand for the new housing required to cater for the significant population growth.

“The directors believe that Springfield is uniquely placed to capitalise on these opportunities thanks to its large land bank across the Highlands and Moray, with a majority of plots already having planning in place, and its established position as a leading housebuilder in the region.”

Springfield Properties CEO Innes Smith said: “This profitable land sale will enable us to realise the value of our assets, accelerate our plans to remove bank debt and focus on the significant opportunity in the North of Scotland where we are uniquely positioned to excel.

“New housing is required to cater for the thousands of workers needed to deliver the substantial green infrastructure development coming to the region and the ongoing population growth as result of the economic stimulus these projects will bring.

“With significant land holdings across the Highlands and Moray and an established presence, we are excellently positioned to capitalise on this opportunity.

“In addition, we continue to have a large high quality land bank, with this deal demonstrating the long-term value of that asset. Accordingly, and with a significantly strengthened balance sheet, we continue to look to the future with confidence.”

Springfield said that for the six months ended November 30, 2024, statutory profit before tax increased 192% to £3.5 million and adjusted profit before tax and exceptional items rose 90% to £3.8 million.

First-half revenue fell 13% to £105.6 million “due to the group having entered the period with a lower private housing forward orderbook than at the same point in the previous year.”