Springfield Properties said it is expecting 28% growth in full-year revenue to £330 million, the group’s highest ever annual turnover despite the turmoil in the housing market.

Growth is being driven partly by the full year contribution from the acquisitions of Tulloch Homes and Mactaggart & Mickel Homes, it said in a trading update.

Profit before tax for FY 2023 is expected to be in line with market expectations.

The Elgin-based company, which is quoted on the Alternative Investment Market, took a strategic decision to pause entering long-term affordable housing contracts and has implemented cost savings of c.£3m on an annualised basis in direct response to market conditions

It has a land bank of c.16,300 plots as at 31 May, with over half having planning permission, and a GDV of c. £3.5bn

Net debt has reduced to £68m at year end (30 November 2022: £73.7m)

Innes Smith, CEO, said: “Against a challenging market backdrop, we delivered our highest annual revenue, reflecting our acquisitions as well as organic growth in private housing. While our margins were impacted by significant build cost inflation, particularly in affordable housing, we took decisive action to address this.

“We remain cautious about the near-term outlook, particularly given the softening in demand following the increase in rates by the Bank of England to 5%. We are closely monitoring the economy and buyer behaviour in both the housing and land market and carefully managing our activities to limit our exposure in the slower sales environment.

“This will also ensure that we can respond quickly when normalised demand returns. With over half of our large, high-quality land bank having planning permission, we are well-positioned for when market conditions improve. We are also encouraged that the Scottish Government has now increased its affordable housing investment benchmarks, supporting the viability of affordable housing projects going forward.

“Moreover, the fundamentals of the housing sector in Scotland remain strong. There is an undersupply of housing, which is being exacerbated by the current conditions, and there is greater affordability in Scotland compared with the UK as a whole.

“Above all, we remain committed to delivering great quality housing for our communities and value for our broader stakeholders both now and in the years to come.”