SPRINGFIELD Properties has hailed the firepower brought by its stock-market listing as it unveiled record profits and turnover, sending shares up nearly nine per cent.

The Elgin-based housebuilder made a profit before tax of £9.8 million for the year ended May 31, before costs linked to its stock market float last October and its £20.1m acquisition of Dawn Homes were taken into account.

Profits rose as turnover climbed by 27% to £140.7 million, driven by the growth of its private and affordable housing divisions.

The company completed a total of 770 homes over the period, 24.2% more than during the previous year, which included 460 private and 310 affordable homes across the country.

Asked to comment on the company’s experience in its first year on the Alternative Investment Market (AIM), chief executive Innes Smith replied: “There is obviously more reporting to do, but what it does is give us access to capital so that we are able to do deals like the Dawn acquisition.

“We [have] really seen this as a real positive for our business and it’s really given us the chance to grow our Scottish company.

“We’re sitting in front of you today with record turnover [and] record profits. Basically, everything is up except for debt. It is all good.”

Springfield saw revenue at its dominant private housing arm grow by 17.9% to £101.9m.

Mr Smith said no further acquisitions were imminent but emphasised that the company remains on the look-out for deals. “We are constantly looking to add to our land bank and our sales,” he said.

“Everybody deserves a good home in Scotland, and we like to think we can help with that.”

The acquisition of Dawn Homes boosted the company’s presence in Glasgow and the west of Scotland, areas where it had previously not been represented. All 49 Dawn staff have stayed with the business, which continues to be led by the same executive team, headed by managing director Martin Egan. Mr Smith said there is “no reason to change” the Dawn brand name. “We think we have got a strong brand,” he said. “They have got a good pipeline, they have got a good offering, they connect well with their customers. Why change something that is working?”

Mr Smith said demand for private housing in Scotland continues to exceed supply, with 17,000 being built in a market believed to require 24,000, and noted that mortgage availability remains good. And he said the move by the Bank of England to increase the interest rate by 0.25 per cent to 0.75% in August simply reversed the cut made by the Bank in the immediate aftermath of the Brexit vote in June 2016, which he believes had not been necessary.

“We are seeing mortgages being offered just now at 1.5%,” Mr Smith said. “Banks are still offering very affordable mortgages and there is room for mortgages to go up before it would start affecting sales.”

Asked whether the company is aided by Help to Buy, the government scheme to support first-time buyers, he said most of its sales were above the initiative’s £200,000 threshold. Help to Buy was used in 16% of Springfield sales last year, he said. The average selling price for Springfield for private homes was £221,500 last year, up from £197,600.

Mr Smith said the company’s move into affordable housing is “paying off”. He noted broad political support for investment in affordable housing, with the Scottish Government having committed £3.2 billion to help address the shortfall.

Springfield grew revenue from affordable homes by 60.3% to £37.3m over the period. It achieved an average selling price of £120,200 from affordable homes, down from £127,000, which the company said was down to a difference in sales mix.

Shares in Springfield closed up 10p at 125p.