Miller sees advance sales more than double despite housing gloom

Published on Wednesday 13 January 2010 20:42

MILLER Group, Britain's largest privately owned housebuilder and construction firm, yesterday reported a doubling of forward sales, despite continuing tough market conditions leading to a fall in average selling price.

The group said it had seen a 104 per cent increase in advance sales for 2010, worth 108 million, up from 53m at the same point last year. The figures will provide a further shot in the arm for an industry battling out of recession.

Miller also announced an increase in house sales volumes, up by 35 per cent for the year ending December 2009, compared with 2008, despite its average selling price slipping from 164,000 to 160,000.

The news, in a trading update ahead of March's full-year accounts, follows Persimmon's announcement last week of a 40 per cent rise in forward sales for 2010.

Last year, Miller opened seven new housing developments and expected to start on a further ten this year.

No-one was available to comment from Miller Group's management.

However, a spokesman for the company said: "It's been a harsh winter, but spring always comes around eventually.

"We expect market conditions to remain challenging, but we have a strong, diversified structure, with experienced management committed to making further solid progress in 2010."

In September, the group reported a 33.8m half-year pre-tax loss for 2009, up from a 22.2m shortfall in the same period a year before. In the same month, 100 jobs were axed in its construction division, adding to the previous 600 cut in 2008 at the height of the housing slump. Miller Group also had to deny speculation in September that Lloyds Banking Group might sell its 20 per cent stake in the company.

In yesterday's statement, Miller said it expected uncertainty to remain within the market due to mortgage shortages and the impact of increasing unemployment.

It added: "With over 30 per cent of housing sales for 2010 already secured, a positive yielding property portfolio and a quality construction order book, and experienced teams, we look to the future with confidence. We continue to operate comfortably within our financial covenants, with over 235m of headroom in our banking facilities.

"The UK construction industry remains challenging, with thin order levels and unsustainable pricing. However, our focus on partnering and framework agreements, together with an efficient operational structure, provides us with optimal protection from these market conditions."