Miller Group positive despite losses and drop in turnover

The Miller Group has posted an operating loss of £7.4m before interest and tax and seen turnover drop 19% to £404m in the first six months of 2009, but is optimistic that a strong construction forward order book and a recovery in housing will improve its fortunes.

The UK's largest privately owned housebuilding, property development and construction business said it was trading ahead of expectations and was now looking at new investment opportunities.

Despite recording an £11m loss, the housing business is showing "strong signs of recovery" with completions for the half year 8% ahead of 2008 and total reservations 45% ahead of the same period. It added that house prices were stabilising, despite an 18% fall from their peak. 

Construction was trading ahead of expectations, turning in a profit of £3.6m on a turnover of £228m for the six months to June. The firm highlights "thin order levels and unsustainable pricing for available work" but reports it is resonably protected by long term framework agreements and 75% of its £600m order book in the public sector.

It said it was now reviewing opportunities for reinvestment in commercial property, having turned in a £3.3m profit in the sector.

Group chief executive Keith Miller said: "Our markets are showing some signs of stability and there are positive indications of recovery ahead. Asset markets are also slowly improving reflected by our performance in housing where reservations and volumes are considerably ahead of 2008.

"Markets are likely to remain challenging but we have a highly proven and experienced management team who will take full advantage of the economic upswing when it arrives.’

Sir Brian Stewart, chairman, added: "The management team has successfully streamlined the Group’s operations and, by ably facing these challenges, demonstrate how well our Group is placed to take advantage of opportunities when they arise and so return the Group to a more prosperous future."