Home North West Miller Homes Announce Interim Results

Miller Homes Announce Interim Results

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The Scottish house builder has a number of developments across the North West and has seen revenues and profits rise for the six months to June 30.

Financial highlights:

  • 13% increase in core and joint venture completions to 1,684 homes (H1 2018: 1,493 homes)
  • 10% increase in operating profit to £77.8m (H1 2018: £71.0m)
  • Operating margin of 20.0% (H1 2018: 20.0%)
  • Return on underlying capital employed (ROCE) of 30.9% with c3,600 plots acquired in last 12 months
  • Forward sales at record levels of £368m and 7% ahead of last year

Disciplined approach to land investment:

  • 5% increase in owned landbank to 9,668 plots (Dec 2018: 9,174 plots) further supported by 3,308 controlled plots (Dec -2018: 3,350 plots) resulting in an overall consented landbank of 12,976 plots (4.1 years’ supply)
  • 7% increase in the strategic landbank to 18,591 plots (Dec 2018: 17,331 plots)
    – Continued focus on build quality and employee engagement
  • HBF National New Home Customer Satisfaction Survey 5 star rating awarded
  • External survey confirms employee engagement of 94%
  • Strategy in place to continue UK geographic growth
  • Launch of new Teesside region planned in second half of this year and follows new West Midlands region established 18 months ago
  • On track to deliver our strategic target of 4,000 homes by 2021

Chris Endsor, Chief Executive, 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.

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 new Teesside region will be launched in the second half of this year, becoming fully operational from the start of 2020.
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 customer satisfaction scores continues to exceed 90% and a recent employee survey has confirmed that 94% are positively engaged in the business.

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.”