Miller operating profit tops £100m for first time

Chris Endsor

Edinburgh-based Miller Homes said its operating exceeded £100 million for the first time in 2016 and that 2017 forward sales are 50% ahead of last year.

Miller said operating profit rose 31% to £103 million, profit before tax rose 44% to £89.3 million, and revenue rose 13% to £565 million driven by an 11% increase in core completions to 2,380 units and a 2% increase in average selling price to £231,000.

Miller Homes CEO Chris Endsor said: “2016 was an outstanding year for Miller Homes delivering operating profit in excess of £100 million for the first time.

“We outperformed on all key financial metrics for the fifth consecutive year which confirms the strength of our regional markets, our strong customer service and the successful execution of our strategic plan.

“2016 was dominated by speculation around the shape of Brexit both before and after the vote.

“This had no discernible impact on the business which continued to perform strongly in the second half of 2016, with sales rates 17% ahead of the prior year.

“Additionally, modest levels of house price inflation were delivered throughout the year.

“We are currently 55% forward sold for 2017, with continued confidence on the back of our strong presence and successful operating model in our regional housing markets.

“A substantial land investment programme is planned in 2017, alongside the launch of a new region in the Midlands.

“Our organic growth strategy will deliver a 68% increase in the capacity of the business to 4,000 homes per year with plans to deliver this by 2020.”