Miller Group Announce Interim Results
09.09.09 Company: Miller Group
The Miller Group (the ‘Group’), the UK’s largest, privately owned Housebuilding, Property Development and Construction business, today announces interim results for the half year to 30 June 2009
- Strengthened financial position with Group operating comfortably within its financial resources
- Trading encouragingly ahead of expectations
- Major participation in Government-backed housing initiatives
- Capitalising on improving market conditions and reviewing new investment opportunities
Financial Summary
- Turnover of £404m down 19% from 2008 due to reduced activity levels in Construction and Commercial Property
- Group operating loss after exceptionals and before interest and tax of £7.4m (2008: profit £0.8m)
- Group loss before tax of £33.8m (2008: £22.2m)
- Cash generated in the period of £22m (2008: Cash outflow £64m)
Operational Highlights
Housing
- 8% increase in Housing volumes in the period to June 2009 of 1,048 (2008: 972)
- 45% increase in reservations booked to the end of August of 1,773 (2008: 1,221), significantly ahead of target and providing a much improved forward sales position for 2009
- Cancellation rates have returned to historic levels of 15% (2008: 31%), indicating greater stability returning to the market
- House prices stabilising. Average sales price £151,000 (2008: £175,000). Prices have fallen 18% from their peak
- Successful participation in The Homes and Communities Agency HomeBuy Direct and Kick Start schemes which will involve the completion of 1,567 units between 2009 and 2011 under these initiatives
Commercial Property
- Continued improvement in quality of portfolio with over 147,000 sq ft let during the period
- Portfolio yields a positive return after direct operational and finance costs
- Actively reviewing new opportunities for reinvestment
Construction
- Trading ahead of expectations
- Order book of £600m (2008: £800m) provides satisfactory visibility towards 2010 and beyond
- 75% of order book is within the public sector, largely in education and healthcare
Keith Miller, Group Chief Executive, said:
‘Our markets are showing some signs of stability and there are positive indications of recovery ahead. Asset markets are also slowly improving reflected by our performance in housing where reservations and volumes are considerably ahead of 2008. Markets are likely to remain challenging but we have a highly proven and experienced management team who will take full advantage of the economic upswing when it arrives.’
Sir Brian Stewart, Chairman, commented:
‘The management team has successfully streamlined the Group’s operations and, by ably facing these challenges, demonstrate how well our Group is placed to take advantage of opportunities when they arise and so return the Group to a more prosperous future.’
For further information:
Keith M Miller, Group Chief Executive, The Miller Group, 0870 336 5108
John Richards, Group Finance Director, The Miller Group, 0870 336 5108
Robert Ballantyne / Shan Shan Willenbrock, Cardew Group, 020 7930 0777
