Pre-tax profits for the year to the end of May fell 37.% to £11.9m from £19m in the previous year when it benefited from significant land sales as part of the group’s debt reduction strategy.

Group revenue fell 13.2% to £243.7m, primarily because of these sales. Despite this, private housing revenue increased by 5.9% to £165m and affordable housing revenue grew by 9.9% to £54.3m.

The company successfully eliminated its net bank debt, achieving a net cash position of £1.2m, and has proposed a dividend of 3p per share, a 50% increase, alongside a share buyback programme.

Strategic progress includes an agreement to deliver nearly 300 homes in the North of Scotland for an energy infrastructure provider.

Innes Smith, chief executive, said: “This has been an excellent year for Springfield. We achieved a key strategic priority of eliminating our net bank debt, which was significantly ahead of market expectations.

“Our underlying business remained resilient, with year-on-year growth in both private and affordable housing. We made significant progress in capitalising on the substantial opportunities in the North of Scotland, which are being driven by the incoming energy security infrastructure and renewable development.

“Building on our initial agreement to deliver almost 300 homes across six sites for a major infrastructure provider, we have been engaging with our partner as well as progressing works, and we will be signing the main contract for the first site imminently.

“Looking to the current year, our private housing reservation rate has been steady and we have continued to secure new contracts on favourable terms in affordable housing. Our significantly strengthened balance sheet has enabled us both to increase our dividend and launch a share buyback programme.

“We are disappointed that the market continues to undervalue housebuilders, with Springfield’s share price remaining materially disconnected from our view of the underlying value of the business, reflecting neither the strength of our balance sheet, the quality of our land holdings or the opportunities available to us in the North of Scotland.

“We therefore see the buyback as a compelling opportunity to create value for shareholders while demonstrating the Board’s confidence in Springfield’s future prospects.

“With strong operational momentum and significant opportunities ahead, we look to the future with confidence.”