‘Buoyant’ market conditions help Miller Homes achieve 66 per cent profit jump

“Buoyant” market conditions helped the group towards a profit before tax of £38.2 million for the six months to the end of June, up from £23m a year earlier. Operating profit rose 36 per cent from £32.8m to £44.5m while investment in land almost doubled to £80m.

There was also an 11 per cent increase in revenues to £256.1m.

Chief executive Chris Endsor said there had been “no discernible impact” in the run up to the EU referendum on 23 June and highlighted a 20 per cent rise in the company’s sales rate during the second half of the year to date.

He said: “Miller Homes has again delivered significant growth, improving all key financial metrics in the first half of 2016. The 12 per cent increase in our sales rate, together with the launch of new higher margin sites, has led to significant improvements in both operating profit and return on capital employed of 36 per cent and 38 per cent respectively.

“Market conditions were buoyant throughout the first half of the year with no discernible impact in the run up to the EU referendum. This has continued with our sales rate in the second half of the year being over 20 per cent ahead of the same period last year. It is too early to evaluate fully the implications of the EU referendum decision, although it is evident that regional housing market conditions and sentiment continue to be strong.

“There remains high underlying demand for quality family homes in our selected regional locations which are outside of London and the South East underpinned by supportive mortgage lenders in a low interest rate environment. Whilst we will remain vigilant for any negative signs arising from the EU referendum decision, we have no plans currently to alter our substantial land investment programme and are confident in our continued strong future performance.”

Meanwhile Miller Developments has sold its Edinburgh headquarters building Miller House to London-based real estate investor Aprirose in a £10mn deal.

Currently occupied by Miller Homes, Miller Developments, Galliford Try Construction and the Royal Society for the Protection of Birds, the 48,408 sq ft Miller House is the third acquisition for Aprirose in Scotland in the past year.

The company purchased Wm Morrisons supermarket in St. Vincent Place, Lanark, and the Helix House office building in Aberdeen and owns a further seven properties across Scotland.