Miller Homes lays out stock market flotation plans

Keith Miller
Keith Miller

Miller Homes has announced plans for an initial public offering on the London stock market next month.

The firm said the float is expected to raise around £140 million and will entail selling off at least 40 per cent of the company on the open market.

The firm has been planning a float on the London stock market for some time and in July it sold off its construction division, in part to make the float possible.

The house builder will be spun out of the main Miller Group, which will continue to run its mining and development business under chief executive officer Keith Miller.

Chris Endsor, chief executive of Miller Homes, said the firm was positioned to “drive strong and sustainable growth” and to benefit from a “continued recovery” in its regional markets.

He added: “It is an excellent time to be operating in the housebuilding sector, with demand for new housing continuing to grow supported by improving macroeconomic conditions and mortgage market and a more favourable planning environment.

“We are proud of what we have achieved so far and look forward to developing our business and creating value for our new stakeholders as a publicly listed company.”

In its announcement the firm said it had a land bank of 16,553 plots on 56 separate sites and its 11.5 per cent operating profit margin to tempt prospective investors. Miller turned over £174m in its most recent six month period, to June 2014, a 40 per cent increase on the previous year, selling 845 homes.

It’s announcement added: “The directors believe that Miller Homes’ existing divisional infrastructure is able to support additional volumes in each of its existing operating divisions to support, in aggregate, 2,750 core completions per annum in the medium term with relatively limited additional overheads.”

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