Springfield Properties PLC on Tuesday said it signed a new contract with Highland Housing Alliance for the delivery of affordable housing worth $15.3 million.

Shares were up 5.1% to 82.50 pence each in London on Tuesday morning.

The Scotland-focused builder of private and affordable housing said the deal includes initial bulk sale of housing, for which it will receive £4.1 million, followed by a design-and-build aspect worth £11.2 million.

Springfield Properties said the bulk sale is scheduled to complete during its current financial year ending May 31, while the design-and- build phase is due to begin in the coming weeks and is expected to have the majority of revenue recognised in Springfield Properties’ financial 2025.

‘Since re-engaging with affordable housing providers, we have been greatly encouraged by the interest that we are receiving. Within the last eight months, we have signed contracts worth around £40 million with local housing authorities and other affordable housing providers. Alongside the design and build contract, we are pleased to have this opportunity to deliver a bulk sale that will support our overall sales rates as well as our focus on maximising cash generation,’ said Chief Executive Officer Innes Smith.

‘As well as contributing towards the Scottish government’s ambitious affordable housing targets, these homes will help meet the surge in demand for housing in the highlands with the Inverness and Cromarty Firth Green Freeport expected to bring 10,000 new jobs to the area. Our strong land-holding across the highlands means we are well placed to assist with housing delivery and we look forward to working with HHA to provide these much-needed homes.’

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