Miller Group sees more stable market as it returns to profit

The Edinburgh-based company, which employs around 150 staff in Yorkshire, has housing developments in Bradford, Huddersfield and Wakefield.

The group, which has housing, construction, property and mining businesses, said that markets were becoming more predictable and stable.

Group profit before interest was 40 per cent higher at £29.2m.

In a statement, The Miller Group said: “The main drivers behind the increased profit were housing, where new land purchased at current hurdle rates delivered increased margins, and mining, where we benefited from coal prices hedged at favourable rates.”

The group’s 2012 profit before tax was £6.6m, a big improvement on the loss of £30.4m before exceptional items which was recorded in 2011.

Core borrowings at £149m are “comfortably within” the Miller Group’s current facilities of £238.5m.

Miller Group chief executive Keith Miller said: “Although we are continuing to operate in a demanding economic environment, the group has a strong balance sheet and long-term committed bank facilities, which provides us with financial flexibility.

“We have made good progress in improving the margins in our consented land bank and, in addition, we have a valuable strategic land portfolio which will underpin our future land requirements.

“Together with a record construction order book and a high quality commercial property development pipeline, the group is strongly positioned for 2013 and beyond.”

In 2012, total housing sales increased by five per cent to 1,831 units, the company said.

The average selling price was £170,000, an increase of six per cent on the year before.