But sharp jump in revenue and strong order book signals business is on track for improved performance

A number of problem jobs tipped Miller鈥檚 construction arm into the red last year, but the firm said a sharp jump in revenue and a strong order book showed it was on track for an improved performance this year.

Reporting its results for the year to 31 December 2013, Miller posted group revenue, including share of joint ventures, of 拢817m, up 32% from 拢620m the previous year.

Pre-tax profit across the group rose 58% to 拢10.4m

However, the firm said its construction business posted an operating loss of 拢4.6m over the year, after write-downs on 鈥渁 limited number鈥� of contracts dragged down its performance.

But turnover in the construction business showed strong improvement, up 58% to 拢409m (2012: 拢259m), while the firm said its construction order book hit record levels at 拢1.8bn, up from 拢1.5bn at the end of 2012.

The firm said: 鈥淢iller Construction recorded an operating loss of 拢4.6m, primarily reflecting losses on a limited number of contracts that had been procured competitively on the basis of price.

鈥淎s we have made clear, we no longer tender for projects on this basis unless they are projects with clients with whom we have ongoing, long-term strategic relationships and are at commercially viable margins.

鈥淢iller Construction delivered significant improvements in the quality of its order book during 2013.

鈥淭he key focus on framework contracts with public sector and regulated bodies provides greater certainty of work over the medium-term with an improved risk profile.鈥�

The firm鈥檚 housing business posted operating profit of 拢22.8m, up 57% from 拢14.5m, with revenue of 拢330m, up 24% from 拢266m the previous year.

Total completions rose 12% to 2,053 units (2012: 1,831).

Keith Miller, Miller Group chief executive, said: 鈥淢iller Homes continues to benefit from increased demand, improving selling prices and a balanced sales mix, and is delivering increasing margins.

鈥淚n our Construction business we have taken the necessary steps to deal with the loss-making contracts.

鈥淭he business is now focused on frameworks and aligned to clients with long-term programmes of work.

鈥淭his is a strong set of results which provides an excellent base from which to plan the next stage of Miller Group鈥檚 development.鈥�

 

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