Miller Final Results Announcement

The Miller Group, the UK’s largest, privately owned Housebuilding, Property Development and Construction business, today announces final results for the year to 31 December 2008.

• Unprecedented market conditions in Housing and Property
• Timely action taken to significantly reduce cost base
• Record Construction profits
• Strong forward order book for Construction
• Committed finance in place for future development

Financial Highlights

• Pre-exceptional Group Profit before Interest and Tax of £14.9m (2007: £127.7m)
• Miller Construction reports record Turnover and Operating Profit of £622m and £13.7m (2007: £389m and £10.1m)
• Annualised cost savings of £33m achieved
• Exceptional costs of £136m due to: 
      • Housing landbank write-down of £85.7m 
      • Housing goodwill impairment charge of £19.8m 
      • Property portfolio write-down of £15.9m 
      • Restructuring costs of £14.6m
• Group loss before tax of £170.0m (2007: Profit £81.2m)

Operational Highlights

• Record orders secured in the year by Construction and strong forward order book of over £700m
• Swift and decisive action taken in the middle of 2008 to restructure the Housing and Property businesses in response to rapidly worsening market conditions
• Encouraging activity levels in first 10 weeks of 2009 in Housing 
      • 2009 reservations significantly ahead of 2008 
      • Forward sales reservations of 895 units (2008: 1,166 units)
• 80% of the Commercial Property portfolio income-yielding; 20% long-term strategic land holdings
• Committed bank facilities of £797m extended to March 2012

Keith Miller, Group Chief Executive, said:

'The increasingly challenging conditions during 2008 required a series of tough decisions from The MillerGroup. The collapse of mortgage and bank lending had an immediate impact on our Housing and Commercial Property businesses, with volumes and values significantly reduced. This required prompt action to restructure these businesses. In complete contrast, the Construction business had a record year with substantial increases in both turnover and profits and a very strong order book of over £700m. Looking forward, the Group has the benefit of a clear strategy, a diverse range of businesses and experienced management teams.'

Sir Brian Stewart, Chairman, commented:

‘We took early action to reposition our businesses for the challenges ahead. The Miller Group has the confidence of its long-term funding partners with committed facilities through to 2012. This support and the decisive action taken during 2008 provides a solid platform to take the business forward.‘

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 5028
Robert Ballantyne, Cardew Group, 0207 930 0777>