MILLER Group, Scotland's biggest private company, has hoisted pre-tax profits to a new record of pounds-52.5m, a 31-per cent rise on the previous year, with buoyant performances from all three of its businesses.
The housing, property and construction group which has been tipped to go public for the past five years has in that time now trebled profits and doubled both dividends and shareholder funds.
Keith Miller, chief executive, said: "As every year goes we get happier being a private company.
It gives us more f lexibility."
The strong housing market helped that division lift its operating margin from 12-per cent to 15-per cent, while return on capital was held at 19-per cent despite a pounds-200m investment in housing land and pounds-300m in commercial property.
The group said the investment paved the way for the next phase of its strategic plan. "We are looking to accelerate organic growth within our existing housing regions, targeting to sell 3500 houses per annum by 2007. Together with controlled expansion of both commercial property and construction, we anticipate turnover approaching pounds-1bn by that date."
Keith Miller said of housebuilders' prospects: "You can't ignore the fundamentals of the market. There is a complete supply-demand imbalance, we are still not building anything like the number of houses for the demand.
"Interest rates have gone up a few times, but on a historical basis they are still very low."
Miller urged the chancellor to lift the stamp duty threshold in today's budget, adding: "Stamp duty is not just in the residential sector, it is in the commercial sector where it is a 4-per cent tax on every major deal, which is ridiculous."
The group now has 80 housing developments, 70 commercial property projects and 50 construction projects in progress.
Housing was the main driver behind the increase in profits, with the average selling price rising by 14-per cent to pounds-175,000, and the margin up by 25-per cent.
"We have 10,450 units owned or controlled which have a developable value of pounds-1.9bn, nearly five times current year turnover, " the group said.
The property business achieved a "step change" during the year in the number, size and value of projects, helped by the bigger scale possible through its joint ventures.
Miller completed its first retail project in Eastern Europe, adding to three (non-food) retail projects totalling 478,000 sq ft in Portugal which are at different stages of development.
The construction arm stresses partnering, value engineering and project management, now procuring all its business on a negotiated basis and from a growing number of repeat customers.
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