Scotland business

Miller Group sees pre-tax profit rise three-fold

Miller Homes staff on construction site Image copyright Miller Homes

Housing and property firm Miller Group has reported a three-fold rise in pre-tax profits.

The Edinburgh-based firm posted profits of £34.6m last year - up from £10.4m in 2013 - while group revenues rose by 19% to £484.4m.

The company's results were boosted by a strong performance from its homes division.

Completions rose by 12% to 1,918 units, driven in part by a strong opening order book.

The division's performance was lifted by a 10% improvement in average selling prices to £200,000.

Miller said the growth reflected an increased focus on building larger houses in quality suburban locations, together with modest price inflation.

'Strong performance'

Group chief executive Keith Miller said: "Miller Homes delivered a strong performance in 2014 benefiting particularly from continued improvements in the housing market.

"The business achieved significant growth in operating margins and return on capital driven by higher volumes and the increased contribution from newly-acquired sites.

"Miller Homes also made an encouraging start to 2015. Private reservations to date are 18% higher than the prior year.

"Land supply and housing demand across our regional markets remain healthy."

He added: "We are focused on the delivery of increased margins and an enhanced return on capital.

"This is being achieved by a disciplined approach to land investment, growing volumes with limited additional overheads and increasing the conversion of strategic land."

Miller aims to deliver annual completions of up to 3,000 units in the medium term.

In October, Miller shelved plans to float on the London Stock Exchange, blaming market volatility.

It had planned to raise about £140m in a drive to reduce debt and increase flexibility.

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