The £7.1m housing loss in the first half, amounted to a slight improvement on losses of £12.7m in the same period last year.
Profits from property, contracting and mining activities helped Miller return a trading profit of £3.3m on turnover down at 16% at £338m.
Net debt fell £135m to £808.2m compared to the same time last year, with interest and fee payments now costing £30m.
Keith Miller, Group Chief Executive, said: “We continue to make good progress in all businesses, each delivering an improved performance compared with 2009.
“Cash generation is strong as we recalibrate our debt to a more sustainable level.”
He said that forward land prospects were encouraging, with 11,260 plots allocated in local plans.
“This provides us with visibility and excellent opportunities for profitable growth over the next five years.
Miller opened nine new sales outlets during the first half year and a further five are planned during the second half.
Contracting delivered an operating profit up 31% to £3.8m, despite turnover falling a third to £155m.
Chairman Sir Brian Stewart said: “Markets remain challenging, but we have already secured sufficient orders to deliver a turnover of around £300m for 2010.”
Government cut-backs saw the firm’s Gloucester Police PPP project cancelled while its Leicester BSF scheme escaped unscathed.
The commercial property arm continued to perform well, contributing an operating profit of £5.5m (2009: £2.4m)
Miller Developments has conditionally contracted to purchase a site in Nottingham city centre, which has a 100,000 sq ft office pre-let from E.ON.