The Courier & Advertiser (Perth and Perthshire Edition)
Miller Homes builds landbank as it reports strong earnings
HOUSEBUILDING: Major Scottish firm has developments in Tayside and Fife
Major Scottish housebuilder Miller Homes has defied a national slowdown in house sales by announcing strong growth.
Reporting its interim results yesterday, the Edinburgh-based firm said its revenues were 9.6% ahead of last year at £389.2 million for the six months to June 30. Pre-tax profits for the first half were at £55.3m, up 19% against last year’s £46.3m.
Miller, which was acquired by private equity group Bridgepoint for £655m two years ago, has several developments in Tayside and Fife including Ashludie Grange at Monifieth, Regents Gate at Crossgates and Lapwing Brae in Dunfermline.
Chief executive Chris Endsor said: “Miller Homes has again achieved significant levels of growth, with volumes up 13% and operating profit 10% ahead in the first half of 2019.
“To have delivered an operating margin of 20% demonstrates the resilience of our regional markets and the group’s disciplined approach to land buying and cost control.
“Customer demand has remained strong, set against a backdrop of competitive mortgage rates but just as importantly an overwhelming need for many of our customers to acquire a new home.”
The group completed 1,600 units in the first half of 2019 and has set a target to reach 4,000 homes a year by 2021.
In the first half Miller increased its landbank by 7% to 18,591 plots at a cost of £94m.
The firm said it had record forward sales of £368m.
“The group remains confident in the fundamentals of its regional markets whilst continuing to review all key lead indicators in the run up to the next Brexit deadline,” Mr Endsor added.