Half-year loss, but Miller stays stability is returning

Published on Wednesday 9 September 2009 21:10

TOUGH housing markets have pushed Miller Group into a half-year loss, though Britain's biggest privately-owned housebuilder said there were signs of stability in the sector.

The group ran up a pre-tax loss of 33.8 million, against a 22.2m loss last time, on revenue down a fifth at 404m. But group chief executive Keith Miller said the company was comfortably within its financial resources.

Miller cited an 8 per cent rise in housing volumes in the period and cancellation rates returning to historic levels of 15 per cent from 31 per cent in the first half of 2008.

The group was also "pleasantly surprised" by a 45 per cent increase in reservations booked to end-August of 1,773 against last year, he said.

However, Miller said the recovery in the housing market was only incremental and that it would probably be late 2010 or early 2011 before there was meaningful improvement.

"It is a tough business to be in," he said.

Regarding the tight mortgage market, Miller said: "We are seeing some improvement but nothing revolutionary."

The housing division's losses at half-time deepened to 11m from 2.6m. The dividend is passed. Miller said the Edinburgh-based company had been protected from the worst by having a largely family-based housing offer.

The company also said house prices were stabilising, having fallen nearly a fifth from their peak. The average Miller sales price was 151,000 against 175,000 last time.

Miller's property and construction divisions both remained in the black – property profits came in at 3.3m against 20.5m last time; construction profits 3.6m against 5.6m.

Miller said the construction order book was 600m (800m last time) at "good" margins of 2 per cent to 3 per cent.

He brushed aside suggestions that Lloyds Banking Group might sell its 20 per cent stake in Miller alongside other housing investments built up by HBOS.

"We have not heard anything (from the bank]. It does not bother us, it's irrelevant operationally," he said.