Miller shrinks its losses

Group turnover was down 15% to £666m. Profit before interest and exceptional items was down 60% to £5.3m (2009:  £13.1m).

The group’s construction, property and mining divisions were all profitable, the company said, while its housing business was recovering, with visitor levels now 18% ahead of last year, sales rates improving and prices stable.

Construction turnover was £293m, down from £409m in 2009, and operating profit was down from 2009’s £15.5m to £9.5min 2010 - both numbers were ahead of expectations. 

Construction has had a successful start to 2011, the company said, doubling its preferred bidder appointments in the first two months compared with the same period last year and securing formal approval for £40m of Building Schools for the Future (BSF) contracts.

The strategy is to move away from an over-reliance on short-term capital projects more long-term framework agreements.

Group chief executive Keith Miller said: “The Miller Group continues to benefit from its balanced exposure to the construction, property, mining and housing sectors. Against a continuing weak economic environment impacting particularly on the housing market, the Group has made good progress, with three out of our four main divisions in profit.  We delivered a positive profit before interest and exceptionals of £5.3m, reduced debt by £170m, and recommenced investing in our landbanks.

“New housebuilding remains far below government targets, although there are signs of recovery, slowly but surely.  In the first 10 weeks of 2011 we witnessed improved weekly housing sales rates of 0.47 per site and normal cancellation rates of 14%.  We are also pleased to have won £125m of management contracts, and will continue to seek further opportunities of this kind.

“However, the economy remains fragile and will require a less severe corporate and mortgage lending environment and an improvement in business and personal confidence to maintain momentum.”

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