Shares in Springfield Properties PLC (AIM:SPR) jumped over 10% to 108.62p after the Scottish housebuilder increased profits and announced a significant land sale to Barratt Redrow PLC (LSE:BTRW).
The land sale to the FTSE 100 group covered 2,480 plots across six sites for £64.2 million, 1.3 times book value, with the proceeds to be received over four years and used to cut bank debt and "capitalise on the significant opportunities in the North of Scotland".
The group said it is also in non-binding discussions with Barratt Redrow regarding the sale of additional sites across Central Scotland.
Looking to the past six months ended 30 November, the profit performance was driven by significant margin improvements, as revenue fell 13% to £105.6 million.
Adjusted profit before tax rose to £3.5 million compared to last year's £1.2 million as gross margin increased to 17.7% from 14.7%.
Net bank debt fell by around £30 million to roughly £63 million.
Chief executive Innes Smith said some affordable housing projects were delayed due to uncertainty over the availability of public funding, while subdued housing market confidence resulted in a dip in reservation rates from mid-December.
"However, 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."