Miller halves its losses

The results were impeded by interest payments of £51.2m and £62.4m of exceptional items, but boosted by a £17.1m tax credit contribution.

Group turnover fell 11% in the year to 31 December 2011 to £588m. Group operating profit of £20.8m was significantly ahead of 2010 (£2.4m). This improvement was attributed mainly to margin recovery in housing and an increasing contribution from mining.

The company said that it has minimised its exposure to the competitive construction market “by broadening our offering and by building relationships with a number of national and regional clients who have sustainable programmes of works”.  Construction turnover reduced to £239m (2010: £293m), with operating profit of £7.4m (2010: £9.9m). This trend is expected to reverse in 2012 with delayed framework contracts starting.

Group chief executive Keith Miller said: “This has been a year of substantial progress for The Miller Group, with all four divisions contributing to the success of the business. The group is now in a position to create significant new business and we are looking to the future with confidence.”

He said that 2012 had started well, with reservations in the housebuilding division up 10% on last year and £200m of construction orders won since the start of the year. “This reflects our broadened strategy to encompass framework contracts and lifetime asset management,” Mr Miller said.

On 1 March 2012 the company announced that it had secured new equity investment. The pro forma balance sheet illustrates over £500m reduction in debt with shareholders’ funds of £231m as a result of the restructuring. GSO Capital Partners, a subsidiary of The Blackstone Group, along with The Royal Bank of Scotland, Noble Grossart and senior executives of The Miller Group together invested £160m of new equity capital into the Group. Existing debt has been refinanced with new five-year committed facilities.

Mr Miller said on this: “The significant capital investment and support from our new shareholders provides us with a solid platform for future growth. Our chosen markets are showing encouraging signs of recovery and, with a robust balance sheet, together with the steps we have taken to position each of our businesses, we can look to the future with some confidence.”

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