A native cunning built on solid foundations

Published on Wednesday 18 October 2006 00:57

WITH his top management skills and eye for developing innovative funding and risk-sharing approaches, Keith Miller is your typical tycoon. So much so that the chief executive of construction giant Miller Group recently won the Ernst & Young Scottish Entrepreneur of the Year Award 2006.

Beating off tough competition, Miller was praised for his "dedication and commitment", which made him "a fitting role model for other aspiring tycoons". In particular the award recognised his success in transforming the business into the UK's largest privately-owned housebuilding, property development and construction firm.

A year ago Miller acquired Surrey-based Fairclough Homes in a 264 million deal which boosted its presence in the south of England. The transaction itself was voted "Deal of the Year" at the annual Scottish Business Insider Deals and Dealmakers awards.

Miller was praised for his "native cunning" and "bold business acumen" in being able to play out such a major deal to the Edinburgh firm's advantage. Up against formidable opposition in the battle to win control of Fairclough, Miller's "know thine enemy" strategy was crucial in securing the deal.

The chief executive carried out "forensic-like homework" to identify the weaknesses of the English-based company and strengthen his own company's case to become preferred bidder at a keen price. Miller also leveraged the advantage of being in charge of a private company able to take a long-term view and steal a march on its major stock-market listed competitors at a time when the City was turning negative on the house-building sector.

Miller's "canny" nature has been underlined by the facts that the price paid was at a significantly lower premium than similar deals in the sector and that the acquisition has already exceeded financial expectations.

Miller - who picked up a CBE in the Queen's New Year's Honours List in 2005 for his services to the construction industry and to charity - has been involved with the family business nearly all his working life. After graduating with an honours degree at Heriot-Watt University in Edinburgh, he went to Glasgow University where he added a postgraduate diploma in management studies.

After two years' experience in the construction industry, he joined Miller in 1975, and a year later, aged just 27, was appointed group board director with responsibility for coal mining activities.

Ten years on he became managing director of Miller Developments - with responsibility for the group's commercial property development and investment division - before assuming the chief executive role in 1994.

Insiders say that, far from sitting back and accepting the family jewels on a plate, Miller has played a key role, working through the ranks to help mould and develop the group.

He identified the need for fundamental strategic changes to move the company from its traditional base in construction - where it operated in a competitive low-margin, high-risk environment - to one geared to the growing property and house-building sectors. During his time at the helm, Miller Group has recorded profit increases for 12 successive years.

Like all good entrepreneurs, Miller switches the focus away from himself and on to his team: "We are absolutely delighted to win these prestigious awards and I would like to thank the Miller team who worked tirelessly through the acquisition process. The purchase of Fairclough was a transformational deal for the group, catapulting us into the top-ten league of UK housebuilders and increasing group turnover beyond 1 billion a year."

As to the future, Miller says he is optimistic. "The unbroken run of profits is sustainable, because it is my aim to make sure the company remains dynamic and can adapt to change. There will be other acquisitions, but we will give the Fairclough one time to settle down. It has provided us with a fantastic leg up in one move."

Summing up his entrepreneurial outlook, Miller concluded: "The trick will be to continue to spot changes in the market before they happen."