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Construction firm plans to build more homes

Construction firm plans to build more homes

Miller Homes has pledged to raise its tally of completions to 4,000 a year after reporting a very successful 2016.

The company reported a turnover of £565 million last year, with operating profits breaking the £100 million mark for the first time and profit before tax soaring by 44 per cent to £89 million. This was achieved by an increase in its margins to 18 per cent, a year ahead of schedule.

It achieved these results partly because of an 11 per cent rise in housing completions to 2,380, of which 348 were affordable. This figure included 953 in the north of England, 815 in the Midlands and south and 612 in Scotland.

Chief executive Chris Endsor said: "During 2016 we outperformed on all our financial targets for the fifth consecutive year, confirming the strength of the regional markets, our operational expertise and the successful execution of our strategic plan.

"We entered the year with our 2017 forward sales being 50 per cent ahead of last year. We continue to experience a strong sales market and are currently 55 per cent forward sold for 2017."

He added that the next target is more investment in the land bank to create more plots, something the firm has already done by increasing its number of plots from 11,600 in 2015 to 13,062. In addition, the establishment of a new base in the south-west of the Midlands will make that area the focus of its aim for a 68 per cent rise in completions, the size of increase necessary to reach the target of 4,000 a year by 2020.

The success of Miller contrasts with the recent slowdown in new house building seen in the February Purchasing Managers Index Survey by Markit and the Chartered Institute of Purchasing and Supply. This had indicated that the growth of residential construction was at its weakest in six months.

Image: iStock

 

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