Miller Homes plans to float

The move is expected to raise around £140m as the company sells 40 per cent of itself to investors.

The firm, which will be valued at around £450m, said it will use the cash raised to cut debt and take advantage of future growth opportunities.

Miller Homes has avoided the London housing market and concentrated its operations in central Southern England, the Midlands, the North of England and central Scotland.

The group was founded in Edinburgh in 1934 and initially focused on housebuilding in and around Edinburgh, before expanding into England in the late 1940s.

Yesterday, the company confirmed that it planned to launch an initial public offering (IPO) and list on the London Stock Exchange.

Chris Endsor, the company’s chief executive, said: “Our distinctive focus and deep knowledge of the regions in which we operate, together with our large and well-located strategic land bank, position Miller Homes to drive strong and sustainable growth and to benefit from the continued recovery in these regional markets.

“It is an excellent time to be operating in the housebuilding sector, with demand for new housing continuing to grow supported by improving macroeconomic conditions and mortgage market and a more favourable planning environ- ment.

“We are proud of what we have achieved so far and look forward to developing our business and creating value for our new stakeholders as a publicly listed company.”

Miller Homes has 13 “live” sites across Yorkshire and North Nottinghamshire.

It recently launched the Harlow One development in Harrogate, and new developments are due to be launched soon in Sheffield, Wakefield, Apperley Bridge and Harrogate.

The company has been granted planning permission for a development of 500 homes at City Fields in Wakefield.

This is the first phase of a multi-million pound scheme that will eventually provide almost 2,700 homes in partnership with Wakefield Council. Miller Homes has planning applications that are still being determined for more than 700 homes across the region.

Miller Homes’ chairman, Tony Rice, said: “Miller Homes is well positioned to take advantage of the opportunities for growth and the creation of shareholder value in the future.”

It is expected that the offer will complete in October 2014 and that, following admission, Miller Homes will be eligible for inclusion in the FTSE UK Indices. Miller Homes recapitalised in February 2012, around two years after similar recapitalisations by its publicly listed competitors.

In a statement to accompany the announcement, Miller Homes said it had the potential to benefit from further recovery in UK regional markets.

In the six months to June 30 2014, Miller Homes achieved core completions of 257 units in the Midlands and South; 359 units in the North and 229 units in Scotland.