During the year ending December 31 2018, the housebuilder, which operates in Scotland, the north of England, the Midlands and southern England, completed 3,170 homes. Its average selling price rose 4% to £249,000.
Miller’s operating margin improved by 70 basis points to 20.2%. Forward sales were 6% ahead of the previous year at £292 million. The firm said that it had increased its staff numbers by 11% as it continues to invest in business growth. In 2018, its new West Midlands region delivered just under 350 homes in its first full year of operation. Miller added that it was on course to achieve its strategic target of 4,000 homes by 2021.
Chris Endsor, Miller’s ceo, 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 £151 million 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 £204 million and at the same time, the business generated £82 million 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.”
