The company completed 1,918 units in the year – a rise on 12% on the previous figure. The turnover of £391.9m was up from £330m in 2013, thanks to increased volumes and a 10% improvement in average selling price to £200,000. The growth in average selling price reflected a increased focus of land investment towards larger houses in quality suburban locations, together with modest price inflation.
Profit before interest and exceptional items was up 94% to £44.3m from £22.8m the previous year. The significant improvement in operating margin reflected an increased proportion of completions from new sites together with improved overhead recovery as volumes grow.
Consented landbank increased to 10,012 plots, equivalent to five years’ supply. Planning applications were made on 2,677 plots from its strategic land portfolio. The forward order book at the year-end was 33% higher than last year at £114m, representing 576 units.
Group chief executive Keith Miller said: "Miller Homes delivered a strong performance in 2014 benefiting particularly from continued improvements in the housing market. The business achieved significant growth in operating margins and return on capital driven by higher volumes and the increased contribution from newly acquired sites. Miller Homes also made an encouraging start to 2015. Private reservations to date are 18% higher than the prior year. Land supply and housing demand across our regional markets remain healthy. We are focused on the delivery of increased margins and an enhanced return on capital. This is being achieved by a disciplined approach to land investment, growing volumes with limited additional overheads and increasing the conversion of strategic land. Our target is to deliver annual completions of 2,750-3,000 units in the medium term.”
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