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Stock market float 'remains an option' for Miller Homes as profit rises in 2015

Miller Homes has said it would consider a stock market flotation after the housebuilder posted a pre-tax profit rise of 91 per cent in its latest results.

Speaking to Construction News, Miller Homes chief executive Chris Endsor said floating could still be a possibility, but stressed that the firm was “well capitalised” with the capability to deliver its growth targets.

“It remains an option for us, but I would stress that we have a well-capitalised business with five-year bank facilities to deliver our organic growth plan,” he said.

Mr Endsor said the company was targeting organic growth of 50 per cent by 2019, with “sensible growth” of 10 per cent per year within its existing markets.

“We believe there’s more market share we can get in each of those geographical areas we currently operate in,” he said.

“We know these markets well and we’ve got land in the bank that can deliver that growth. We can do that without trailblazing anywhere and we won’t have to incur start-up costs by setting up new divisions.”

The housebuilder posted an upturn in pre-tax profit of more than 91 per cent for the year to 31 December 2015, while revenue rose to £499.6m, up from £387.5m a year earlier.

Legacy land completions fell to 19 per cent, down from 49 per cent in it previous results. Miller finance director Ian Murdoch said the firm would “see these tail off” over the course of 2016.

“We expect them to fall to double digits, and we’ll just about be finished by 2017 at all of our legacy sites,” he added.

Miller completed 2,153 homes in 2015, up from 1,918 units a year earlier. These were primarily in the North of England, with 889 completions, while the Midlands and Southern England division recorded 710 and the firm’s Scotland division saw 554 completions.

The firm is also aiming to deliver operating margin of 18 per cent by 2017 and is targeting 3,250 completions per year by 2019.

Miller has been operating purely as a housebuilder since it sold its construction arm to Galliford Try for £16.6m in July 2014.





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