Miller turnover and profit up after St Modwen Homes acquisition

Miller Homes has increased its pre-tax profit by 75% following the acquisition of St Modwen Homes in February last year.

The Scottish housebuilder today said its pre-tax profit last year was £124m, up from £71m the previous year. Operating profit rose from £156m to £219m.

The group, in an update based on audited figures, said the increase in profit was driven by a 29% increase in completions following the acquisition of St Modwen.

It completed 4,931 homes in the year, up from 3,813. The group’s core average selling price rose from £283,000 to £296,000 and it maintained its gross margin of 21.6%.

Miller’s overall turnover rose 34% to £1.4bn meaning it is now the seventh largest housebuilder by turnover based on last year’s Top 50 Housebuilders table published by Building. On a like-for-like basis, excluding the impact of St Modwen activity, Miller’s turnover increased 13%.

Miller chief executive Stewart Lynes said: “Looking ahead, following this transformative year, we are well‑positioned to deliver further profitable growth as we progress towards our 7,000 homes target supported by our enlarged landbank and multi‑tenure approach.

“Externally, we are monitoring the economic effects of the Middle East conflict. Our digital sales and marketing system provides granular lead indicators, which to date show no adverse impact, and we stand ready to respond swiftly should conditions change.”