Miller Homes profit tops £151m on £747m revenue

Edinburgh-based Miller Homes said on Wednesday its 2018 revenue rose 11% to £747 million and its operating profit increased 15% to £151.1 million.

Miller said it enjoyed a 14% increase in total completions to 3,170 homes and a 4% increase in average selling price to £249,000. 

The firm said it acquired 3,900 plots in the last 12 months, and forward sales are up 6% at £292 million.

Private equity firm Bridgepoint bought Miller Homes in August 2017 in a transaction totalling £655 million from funds managed by GSO Capital Partners, a division of Blackstone.

Miller Home CEO Chris Endsor said: “I am delighted to report an excellent set of 2018 results for Miller Homes with improvements in all key metrics. 

“Of particular note, was the 15% increase in operating profit to £151m which enabled us to achieve an operating margin of 20% for the first time and ahead of plan. 

“Land investment was 12% ahead of 2017 at £204m and at the same time, the business generated £82m of free cash.  

“Demand for mid-market homes continues to be strong, underpinned by low interest rates and Government support with Help to Buy extended to 2023. 

“We continue to have confidence in the resilience of the UK regional housing markets in which we operate and remain committed to our strategy of growing volumes incrementally to 4,000 units. 

“Market conditions are continually monitored with the optionality in our business planning enabling us to adapt land buying depending upon demand and opportunities.”