Springfield Properties inks £15.3m contract with Highland Housing Alliance

Scottish housebuilder Springfield Properties has signed a new contract with Highland Housing Alliance for the delivery of affordable housing.

The contract, worth a total of £15.3m, includes an initial bulk sale of housing, followed by a design and build aspect.

Springfield will receive £4.1m for a bulk sale of housing, which was scheduled to complete during the current financial year, while the design and build phase, worth £11.2m, was due to commence "in the coming weeks", with the majority of the revenue to be recognised in the group's next financial year.

Chief executive Innes Smith said: "Since reengaging 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 circa £40.0m 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."

As of 1110 GMT, Springfield shares were up 5.10% at 82.50p.

Reporting by Iain Gilbert at Sharecast.com