Miller Homes ups footprint as profits build in first half

● Housebuilder hails ‘robust’ regional markets and posts record forward sales

Miller Homes said it is focused on growing its UK footprint as it invested significantly in land and delivered a double-digit rise in profits in the first half.

The Edinburgh group said it overcame “unprecedented political uncertainty” to record a 10 per increase in operating profits to £77.8 million in the six months to 30 June, up from £71m in the same period last year.

Miller’s owned landbank increased by 5 per cent to 9,668 plots, representing a gross development value of £2.6 billion.

The group acquired 12 sites at a cost of £94m in the six-month spell, which it claimed demonstrated confidence in its “robust” regional markets.

The housebuilder’s Teesside region is set to launch in the second half of the year and will become fully operational from the start of 2020. This follows the launch of its West Midlands arm, which was established 18 months ago.

It pointed to a strong pipeline of forward sales, which climbed 7 per cent to hit a record £368m.

Revenues rose by 10 per cent to £389.2m, as core completions increased by 15 per cent to 1,600 units.

This offset an average selling price drop from £248,000 to £243,000, which the group attributed to the sale of lower value units in a legacy development, and decreased land sales revenues.

Operating margin held steady at 20 per cent.

Miller’s overall consented landbank now stands at almost 13,000 plots, which equates to just over four years of supply.

As stated in an update in March, the group remains on track to achieve its target of 4,000 homes by 2021.

At the end of the period, net external debt stood at £324.1m, down from £299.9m, with the group having secured funding through to 2023.

Chief executive Chris Endhousebuilder sor said: “To have delivered an operating margin of 20 per cent 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 other key focus areas for the business remain customer satisfaction and employee engagement and in relation to both we continue to perform strongly.

“Our regional proposition, supported by significant land investment, excellent build quality and customer service delivered by a highly engaged workforce mean that we are on track to achieve 4,000 homes by 2021.”

Miller Homes, previously part of the Miller Group established in 1934, was acquired by private equity firm Bridgepoint in 2017 for £655m.

In 2014 it outlined plans for a stock market flotation, which it later abandoned due to market volatility.