The Miller Group says it has performed “encouragingly ahead of expectations” in an update on trading ahead of its final results for the year to 31 December 2010.
The privately owned housebuilding, property development and construction company, said housing sales volumes were encouraging at the start of the year but diminished following the general election and the government spending review, resulting in a disappointing final quarter.
It achieved 1,915 completions – down from 2,068 in 2009 – at an increased average selling price of £168,000 (2009: £160,000) reflecting a change in mix with more family housing sales and fewer apartments.
Miller Group has 82 active sites, including 14 new developments that got underway in 2010, and is planning a further eight new site starts this year. Further to this, it expects to obtain planning consent for around 14,900 plots on 40 sites over the next five years.
Miller’s landbank now stands at 6,300 units (2009: 8,300) equivalent to 3.3 years’ supply, down from four years’ supply at the end of the previous year.
During the year, it won a management contract at The Rock, Bury, and the Thomas Mitchell Homes management contract in Scotland.
Miller Developments, the group’s commercial property arm, has a 2m sq ft portfolio, predominantly in the retail and office sectors, of which 88% is income-producing.
New lettings included a 105,000 sq ft prelet to E.ON and a 35,000 sq ft prelet headquarters for Speedo – both in Nottingham – and 20,000 sq ft to Aker in Aberdeen. It also sold a multilet, 60,000 sq ft office in Edinburgh Quay.
The group said: “We believe values have stabilised in the UK, creating good opportunities for well-financed businesses with development skills to prosper. We are reviewing a number of exciting new development opportunities around the country, many of which are at advanced negotiations.”
Chief executive Keith Miller said: ‘The diversity of our operations has enabled the group to perform encouragingly ahead of expectations during a period of continuing economic uncertainty.
“While housing performed well in the first half of the year, it weakened in the second half, but this was more than compensated for by positive activity in our construction business.
“Going forward, we are well-positioned to benefit from an inevitable eventual uplift in the housing sector through our strategic landbank and the substantial management contracts we were awarded last year.”
bridget.oconnell@estatesgazette.com
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