Elgin-based house builder Springfield Properties plc said on Tuesday its profit before tax soared 96% to £19 million as revenue rose 5.3% to £280.6 million in the year to May 31, 2025.

Total dividend per share rose 100% to 2p.

“New strategy adopted to focus on the substantial opportunities in the North of Scotland driven by incoming energy security infrastructure and renewable development …” said Springfield.

“Discussions at an advanced stage with infrastructure providers for Springfield to satisfy their housing requirements in the North of Scotland while maximising the value of the group’s land bank …

“Significant progress in securing options over land in the North of Scotland, which enabled a strong submission of c. 1,400 acres of land to the Highland Council’s call for new development sites …

“Private housing reservation rates remained stable, but a lengthening of the sales cycle reflected more cautious spending, prolonged decision-making by homebuyers and slower processing by conveyancing lawyers …”

Springfield shares rose as much as 6%.

In its outlook, Springfield said: “Looking ahead, Springfield is very excited about the significant prospects in the North of Scotland.

“As noted, the group is in advanced negotiations with infrastructure providers and expect to enter an agreement in the near term for the build and multi-year lease of housing.

“This would allow the group to receive regular income over the course of the lease, which is expected to be four years, as well as having further options for monetisation at the conclusion of that term. This represents an excellent opportunity for Springfield that will allow the group to maximise the value of its land holdings in this area of high demand.

“This approach also reflects the group’s ability to navigate the market and its agility to deliver innovative solutions to meet housing demand while generating value from its high-quality land bank …

“While the private housing market across the UK continues to be challenging as homebuyers remain cautious, the group expects growth to be driven by an increase in ASP and with completions being broadly level. In affordable housing, with over 80% of forecast 2026 revenue already contracted and the remainder under negotiation, Springfield is in a stronger position than it has been in recent years.

“Accordingly, the group continues to look to the future with great confidence.”

Springfield Properties CEO Innes Smith said: “I am pleased with what we achieved this year and how we have positioned ourselves for greater success going forward.

“We accelerated the reduction of our bank debt and delivered an increase in both profit and revenue, despite sales continuing to be impacted by subdued market conditions.

“We have made the decision to refocus our strategy to capitalise on the substantial opportunities in the North of Scotland driven by incoming energy security infrastructure and renewable development.

“We have already made excellent progress in implementing this new strategy and are now in advanced discussions with infrastructure providers whereby we expect to enter an agreement in the near term for the build and multi-year lease of housing.

“This would allow us to receive regular income over the course of the lease as well as having further options for monetisation at its conclusion.

“This reflects our ability to navigate the market and our agility to deliver innovative solutions to meet housing need while maximising the value of our land bank in this area of high demand.

“We are very excited about the prospects in the North of Scotland, in particular, and we continue to look to the future with great confidence.”