Inspiring Business by Sharing Success

Miller Homes - Full year Results for Year Ended 31 Dec 2018

Full year results for the year ended 31 December 2018

Continued strong financial performance combined with investment for future growth
Financial highlights

  • 14% increase in total completions to 3,170 homes (2017: 2,775 homes)
  • 4% increase in average selling price (ASP) to £249,000 (2017: £239,000)
  • 15% increase in operating profit to £151.1m (2017: £131.1m)
  • 70 basis point improvement in operating margin to 20.2% (2017: 19.5%)
  • Return on underlying capital employed (ROCE) of 33.4% (2017: 33.0%)
  • Free cash generated of £81.7m (2017: £75.4m)
  • c3,900 plots acquired in last 12 months
  • Forward sales at £292m and 6% ahead of last year

Disciplined approach to land investment

  • 10% increase in owned landbank to 9,174 plots (2017: 8,364 plots) further supported by 3,350 controlled plots (2017: 5,374 plots)
  • 5% increase in the strategic landbank to 17,331 plots (2017: 16,561 plots)

Operational initiatives to drive performance

  • HBF National New Home Customer Satisfaction Survey 5 star rating awarded for 7 out of the last 8 years
  • Product and specification review undertaken benefiting build costs from 2019 onwards
  • 11% increase in staff numbers as we continue to invest in business growth

Strategy in place to continue UK geographic growth

  • West Midlands region launched with just under 350 homes delivered in first full year of operation in 2018
  • On track to deliver our strategic target of 4,000 homes by 2021

Chris Endsor, Chief Executive, 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 £151m 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 £204m and at the same time, the business generated £82m 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.”

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