Miller Homes reports rise in profits

Miller Homes said it had already achieved its construction turnover target for 2013

Housebuilder Miller Homes has put in a solid performance in the first half of the year after noting a "marked improvement" in the housing market.

The Edinburgh-based group saw profits climb to £4m from £400,000 last year, while turnover was up by 27% to £361m.

Miller said first-half results had been boosted by UK government measures in the housing sector such as the Funding for Lending scheme and Help to Buy.

It added it now had a "strong base" from which to plan future growth.

The company, which operates in Scotland, the north of England, the Midlands and the south of England, said its housing division had already secured 92% of target volumes for the full year and most of the land required for 2014.

In terms of construction, it has already achieved its turnover target for 2013 and almost three-quarters of its 2014 target.

However, the division recorded a loss of £2.4m for the six-month period to the end of June.

Miller blamed "an extremely competitive contracting market" and cost overruns in a small number of projects as a result of "operational issues, insolvency of subcontractors and difficulties in recovering the cost of client variations to project specifications".

Reservations

In the first half of the year the Help to Buy scheme in England - designed to help first-time buyers get on the property ladder and enable existing homeowners to "trade up" to larger properties - accounted for 16% of reservations.

Similar Scottish government schemes, such as MI New Home and New Buy, accounted for 8%.

A new Scottish scheme to match Help to Buy is expected to be launched in the next few weeks.

Group chief executive Keith Miller said: "There is a big difference, England has certainly got ahead and particularly help for the first-time buyers.

"There's no doubt we're well ahead in our English markets in terms of reservations.

"We're pleasantly surprised at how well the market has held up in Scotland but it's nowhere as strong as it is in England.

"Scotland is 10% of our market and hopefully we will grow at the same rate as other markets."

Mr Miller said the firm was "back on the front foot", thanks to a general pick-up in the market.

He added: "The group made good progress during the first half of 2013 with increased profits, a longer land bank, strengthened order books and reduced debt.

"The board is confident that the results for the year will be in line with its expectations.

"We now have a strong base from which to plan for the future development of the business."