Miller's profit hike

Edinburgh-based Miller saw its profits climb sixfold to œ3 million in the first six months of 1996, according to its interim statement posted on Tuesday.

The hike in profits was helped by a sharp reduction in the cost of sales - down nearly 16% to œ128 million.

Turnover fell by 12% to œ142 million compared to the same period in 1995.

The group reports that civil engineering - a heavy loss maker in recent years - is back on track with a solid forward order book. A more selective approach to tendering has restored the division to profit.

Other construction operations continued to encounter tight margins, according to chairman James Miller. The group is concentrating on partnership and selective pursuit of PFI schemes to boost its earnings.

The chairman was confident of Miller's ability to show a strong performance over the full year.

He added that the group is concentrating its resources "on non-standard contacting opportunities as well as expanding our commercial and residential activities."

Keith Miller, chief executive, predicted that "on the back of such an encouraging start to the year - which very much bucks the industry norm - we are confident we will continue to perform well.'"

Miller will be reinvesting the proceeds from the sale in April of Miller Homes Southern. The money is to be spent on further housing land in Scotland and the North of England.

Cash balances at the end of the half year were up from œ15 million to œ36 million.

Net interest received was also higher at œ115,000 compared to œ44,000 a year earlier.

The group has continued to expand its mining operations, with the opening of its third site in Scotland and the purchase of Wimpey Mining.

It is also pursuing a number of PFI projects and is currently the preferred bidder in four health sector projects.