Revenue for the six months to 30th June 2019 was 10% ahead of 2018 at £389.2m (2018 H1: £355.2m). Pre-tax profit was up 19% to £55.3m (2018 H1: £46.3m).
Forward sales at mid-year were 7% ahead of last year at £368m.
Miller Homes is on track to deliver its strategic target of building 4,000 homes a year by 2021. The launch of its new Teesside region is planned in second half of this year. following on from the new West Midlands region established 18 months ago.
Chief executive Chris Endsor said: “Miller Homes has again achieved significant levels of growth, with volumes up 13% and operating profit 10% ahead in the first half of 2019. To have delivered an operating margin of 20% demonstrates the resilience of our regional markets and the group’s disciplined approach to land buying and cost control. Customer demand has remained strong set against a backdrop of competitive mortgage rates but just as importantly an overwhelming need for many of our customers to acquire a new home.
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“As a further sign of our confidence in our regional markets, we invested significantly in land in the period, acquiring 12 sites at a cost of £94m. Our new Teesside region will be launched in the second half of this year, becoming fully operational from the start of 2020.
“Our regional proposition, supported by significant land investment, excellent build quality and customer service delivered by a highly engaged workforce mean that we are on track to achieve 4,000 homes by 2021.”
He added: “Despite unprecedented political uncertainty, the housing market in our regional markets has remained robust with demand levels remaining high for good quality new build homes. In recent years, we have seen price inflation of c.3% per annum in our regional markets and this has been more subdued latterly but still remains positive. Material and labour availability is generally good with cost inflation averaging 3 to 4% per annum but being mitigated through longer term pricing agreements and efficiencies from a product review initiated in 2018. The group’s centralised procurement team has been in close dialogue with our national suppliers and plans are in place in the event of a no deal Brexit.”
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