Independent housebuilder and mining firm Miller Group revealed a return to profit in 2012 following a major refinancing that “transformed” the group’s financial strength.
The company whose housing division has six developments in Tayside and Fife and 24 across Scotland yesterday posted a £6.6 million pre-tax profit for the year to December 31, a massive improvement on the £30.4m loss it racked up in 2011.
Overall group revenues also climbed to £619.9m during 2012, £32.3m higher than the £587.6m achieved the year earlier.
Total net assets at the year end were £236.5m, compared with a negative figure of £183.5m in 2011.
The firm said all four of its operating divisions housing, construction, property and mining made a positive contribution to group operating profit last year.
Housing saw total sales increase by 5% to 1,831 homes, while the average price achieved was 6% ahead at £170,000.
The construction division order book reached a record high of £1.5 billion with more than three-quarters of orders via long-term framework agreements and PPP contracts while the firm’s commercial property arm let 300,00 sq ft of space during the year.
The company’s mining joint venture with Argent Group in south Wales posted a 23% increase to £9.2m despite a 99,000-tonne reduction in the amount of coal dispatched from the Ffos-y-fran land reclamation scheme.
Miller said the division was enjoying an “extremely cash generative phase” it produced operating cash inflows of almost £30m during the year which had allowed it to repay a bank loan to Credit Suisse 2 years early.
However, the most significant move for Miller during the year was the transformatory refinancing which was completed in February 2012 and which brought £160m of new equity into the business and saw the group’s senior debt burden renegotiated.
GSO Capital Partners, a division of the Blackstone Group, took up position as the major shareholder. RBS, Lloyds, Noble Grossart and senior management also hold significant stakes.
Chief executive Keith Miller said the firm now had a sound platform for growth and was looking forward with increasing confidence.
“Although we are continuing to operate in a demanding economic environment, the group has a strong balance sheet and long-term committed bank facilities, which provide us with financial flexibility,” he said.
“We have made good progress in improving the margins in our consented land bank, and we have a valuable strategic land portfolio which will underpin our future land requirements.
“Together with a record construction order book and a high quality commercial property development pipeline, the group is strongly positioned for 2013 and beyond.”
business@thecourier.co.uk