Miller moves into the housebuilding big league

Miller has moved into the housebuilding big league, becoming the tenth largest player by volume in the UK.

Further growth could well be in the pipeline. Miller has asked its banks to up the amount they would be prepared to lend - if asked - to £325m, which amounts to an extra £100m. The request was agreed.

"That's what we now have available to spend on either an acquisition or organic growth," said chief executive Keith Miller.

"We have recently set up a new housing division in the south of England, based in Basingstoke, giving us a total of eight divisions. We spend £50m on buying land for it in the first half of the year and it has got off to a flying start. I'm looking to hit a turnover of £60m-£70m in that region once it gets fully up and running."

Miller's results (six months to 30 June) show turnover at £350m (£320m) and pre-tax profit well ahead at £24m (£11m).

It was Miller's housing division that delivered the bulk of group profit. Completions in the latest interim financial period have jumped 10% to 1,300 units. Housing's turnover jumped by a third to £200m and the average selling price climbed to £170,000 (£140,000). The result was a lift in operating margins to 13% (11%).

The construction division made a margin of 1.3%, a rise from 1% in the same period last year. The construction orderbook grew to a record £325m. "Enquiries are at an all-time high, the reward for our growing reputation as an innovative partnering contractor," said Miller.