Miller has returned to profit after posting a solid set of results with a record increase in its construction order book
In its results for the year to 31 December 2012, Miller Group posted revenue of 拢619.9m, up 5% on 2011, with pre-tax profit of 拢6.6m - up from a loss of 拢30.4m last year.
The firm鈥檚 construction business posted profit before interest of 拢3.2m, down from 拢6.8m the previous year, on revenue of 拢259.4m, up 9% on 2011 - giving a construction margin of 1.2%.
The firm said the performance of the construction business was impacted by 鈥渆xpensing upfront significant business development costs鈥�, which would 鈥渦nderpin the business鈥檚 growth over the next two to three years鈥�.
The firm said its construction order book stood at 拢844m, with over 拢500m of work won in 2012 - 50% higher than 2011. It said it also expected an additional 拢686m in work from its existing framework agreements. It said the profit included 拢6m on the disposal of three mature PFI investments.
The firm鈥檚 housing business reported revenue of 拢266m, down from 拢271m in 2011 - a reduction the firm said was due to higher land sales in the previous year. The housing business posted profit before interest up 拢14.5m, up from a loss of 拢35.1m in 2011.The firm increased completions by 5% to 1,831 units (2011: 1,745 units).
The Group鈥檚 net debt stood at 拢202m, compared to 拢706.6m at the end of 2011, after the firm completed a major refinancing in 2012, which saw 拢160m in new equity investment into the business.
Keith Miller, Miller Group chief executive, said: 鈥淭he Group performed well, with underlying profit before interest up 40% compared to last year. Although we are continuing to operate in a demanding economic environment, the Group has a strong balance sheet and long term committed bank facilities, which provides us with financial flexibility.
鈥淲e have made good progress in improving the margins in our consented land bank and, in addition, we have a valuable strategic land portfolio which will underpin our future land requirements. Together with a record construction order book and a high quality commercial property development pipeline, the Group is strongly positioned for 2013 and beyond.鈥�
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