SCOTTISH housebuilder Springfield Properties raised £25 million when it began trading on the junior London Stock Market yesterday.

The family-run company, which has offices in Elgin and Larbert, released 23.6m shares on the international AIM market at 106p each in its initial public offering.

The move, which resulted in a market value of £87m, saw current shareholders retain 70 per cent of the stock. Executive chairman Sandy Adam heralded the successful flotation as good news for Scotland, saying: “This will support an increase in the number of homes we build and create new jobs.”

The company announced plans to float last month after turnover broke through the £100m barrier.

Springfield completed 620 homes in the year to the end of May and held a land bank of almost 10,500 plots in August, with a gross domestic value of £1.8 billion

Planning permission has been granted for around 40 per cent of this land, which Springfield says amounts to 17 years of building work. Projects in sites near Dundee, Edinburgh, Perth and Stirling are among those in the pipeline.

Meanwhile, the housebuilder believes its two separate operating divisions – one specialising in new private developments and the other in affordable properties – reduces its exposure to the private housing cycle and secures long-term growth.

Adam, grandson of founder Wilfred Adam, suggested the political focus on the availability of more lower-cost housing could help the business hit its growth goals.

He said: “Springfield is poised to play a significant part in the delivery of the many new homes needed across Scotland.

“Our investment in the infrastructure of new villages will accelerate our building of new homes, private and affordable, in new communities.

“The Scottish Government’s aim of building 50,000 affordable homes by 2021 has created an opportunity that underpins the growth of our affordable housing business.

“We welcome our new shareholders, and look forward to updating them and the wider market as we develop our pipeline of projects and position Springfield as a leading housebuilder in Scotland.”

On the market’s response to the share placing, he added: “I am delighted that we have been able to bring £25m of investment into Scotland. The level of support shown by our new investors on our admission to AIM is gratifying.

“It is a real endorsement of the work our employees have put into building a strong and growing business. I would like to thank our new investors for their faith in our company and its staff.”

Springfield Properties reported turnover of £110.6m in the year to the end of May, up from £90.8m the previous year and £84.3m in 2015.

It has doubled in size every five years and currently employs around 500 people.