Moray housebuilder Springfield Properties has seen profits almost triple in the first half of the year.
The Elgin firm saw pre-tax profits of £3.5 million for the six months up to November 30 2024.
Springfield said “strategic action” is behind the growth from £1.2m in the first half of the previous year.
The boost comes despite turnover being down by £16.1m, dropping to £105m for the year.
Springfield also confirmed the sale of 2,480 plots, including 138 in Inverness, to fellow housebuilder Barratt for £64.2m.
Plans to tackle debt under way
Springfield has also reduced its debt to £62.9m, down from £93.4m a year ago.
Chief executive Innes Smith said this is down to land sales and a sustained focus on cost control.
He said: “We significantly improved our gross margin and achieved a strong increase in profit.
“While we are disappointed that some of our affordable housing projects were delayed due to uncertainty over availability of public funding, we are encouraged by the increase in activity in this area following the Scottish budget in December.
“The housing market continues to be influenced by the wider economy and
subdued confidence resulted in a dip in reservation rates from mid-December.
“We are currently seeing an increase in visitor levels, bolstered by the reduction in interest rates earlier this month, giving us optimism that reservation rates will recover in the near term.”
Mr Smith said Springfield wants to clear all of its £62.9m debt in the next three years.
He added: “We’re in the process of really delivering our new strategy to take out our debt by the end of 2027.
“People want their kids to grow up in the Highlands, in Moray, like myself – and they want them to have great opportunities. We can play our part in that with affordable housing.
“The requirement for new housing in the Highlands and Moray is substantial.
“With significant land holdings across the Highlands and Moray and an established presence, Springfield is uniquely placed to deliver on this increased demand for homes.”
Springfield Properties land sale to help grow profits
Mr Smith believes selling land outside of the north of Scotland can help to provide “a positive story” for Springfield.
Its latest deal with Barratt will see 2,480 Scottish plots sold on, including 138 in Inverness.
Proceeds will be received over four years and will also be used to accelerate the debt-free strategy.
Mr 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.”
Conversation