Construction group reports improved interim results

House builder Miller Homes has seen revenues and profits rise for the six months to June 30.

The Scottish group, with significant interests across the North West, recorded a 10% increase in sales of £389.2m in the interim period, while pre-tax profits of £55.3m compared with £46.3m at the same point last year.

Miller Homes said revenues reflected a combination of a 15% increase in core completions to 1,600 units, compared with 1,393 a year ago, offset by a two per cent decrease in average selling price to £243,000 – down from £248,000 – and lower land sale revenues.

During the first six months of 2019, the group saw an eight per cent increase in net private reservations driven by a 14% increase in sales outlets, from 71 to 81.

During the period the group acquired 12 sites, adding 2,090 plots to its owned landbank which, at June 30, has increased to 9,668 plots with a gross development value of £2.6bn, all of which has a planning consent.

In addition the group has a further 3,308 plots (Dec 2018: 3,350 plots) in its controlled landbank. This results in a consented landbank of 12,976 plots (Dec 2018: 12,524 plots) representing 4.1 years’ supply.

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.”

He added: “As a further sign of our confidence in our regional markets, we invested significantly in land in the period, acquiring 12 sites at a cost of £94m.

“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.”

The group said that, despite unprecedented political uncertainty, the housing market in its regional markets has remained robust with demand levels remaining high for good quality new build homes.

In recent years it has seen price inflation of around 3% per annum in its regional markets, and this has been more subdued latterly, but still remains positive.

Miller Homes employs almost 100 staff in the North West region, operating from its Newton-le-Willows office.

During the period it invested £12m in new land and provided 416 homes.

It is currently on site at nine live developments, including a new scheme launched already this year at Blackfield Green in Warton.

Developments due to open in the remainder of 2019 are Novus (formerly Itron), Stretford, Greater Manchester, and Turnstone Grange, Congleton.