In its latest trading update, the group confirmed it expects to report an annual profit before tax that is in line with market expectations, while reducing its net debt by more than anticipated.

A key factor in this performance is a landmark agreement with industry giant Barratt Redrow, involving the sale of 2,480 undeveloped plots across six sites, mainly located throughout the central belt.

Despite interim results in February showing a 13% drop in first-half revenue to £105.6m, adjusted pre-tax profit surged by 90% to £3.8m.

Innes Smith, CEO of Springfield Properties, said: “I am pleased that we have continued to accelerate the removal of our bank debt, keeping us on track to remove bank debt by the end of FY 2027, and achieved an increase in profit and revenue for the year.”

He highlighted that the profitable land sales and improved margins in affordable housing have placed the company on a “firm footing”. This, he noted, will allow Springfield to capitalise on the substantial demand for housing in the north of Scotland, which is being driven by the development of net-zero energy infrastructure.

He added: “We are working with the infrastructure providers, the Scottish Government and the Highland and Moray councils to address this need, and we look forward to reporting on our progress.”