Miller Homes plans £450m stock market flotation

Aaron Morby 8 years ago
Share

Top 10-ranked house builder Miller Homes is planning to float on the London stock exchange.

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.

Miller Homes will sell at least 40% of its shares on the open market, hoping to raise £140m to reduce debt and fund growth.

It is understood a flotation is being targeted for late October/early November with the hope of valuing the publicly-listed house builder at around £450m.

Miller Homes’ board believes there is scope to raise completions from around 1,700 a year to 2,750 with very little impact on existing overhead levels.

The Miller Group completed a £160m refinancing deal in March 2012 with US investment giant Blackstone, which took a majority stake in the firm.

Since then the house building arm has been able to invest in land and restored margins to 11.5% this year.

In the first half of this year, the housing business delivered a £19m operating profit on sales of nearly £170m.

Keith Miller completed the sales of Miller Group’s loss-making construction business this summer,setting the stage for the homes arm to be floated.

Chris Endsor, chief executive officer of Miller Homes, said: “Our distinctive focus and deep knowledge of the regions in which we operate, together with our large and well-located strategic land bank, position Miller Homes to drive strong and sustainable growth and to benefit from the continued recovery in these regional markets.

“It is an excellent time to be operating in the house building 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.”

Miller Homes was founded in Edinburgh in 1934 as part of James Miller and Partners.

In the late 1990s and 2000s, Miller Homes acquired several smaller house builders to expand the business.

This included the acquisition of Cussins Homes in 1999, Birch Homes and the Yorkshire region of Crest Nicholson both in 2000, and the purchase of Fairclough Homes in 2005.

By 2006 Miller Homes was delivering 3,960 units per annum from nine operating regions.

But the 2008 housing crash forced the parent group to recapitalise two years ago, attracting new equity investment.

This allowed Miller Homes to recommence land acquisitions and build up a land bank of 9,000 consented plots and strategic land of 16,500 plots..

Latest news

Tide gets green light for UK’s tallest modular tower

Volumetric specialist to build 48-storey student skyscraper at Canary Wharf
1 day ago

TopHat cuts losses and aims for profit in three years

Modular specialist investing for future as latest results show £19.4m loss
5 hours ago

Story Contracting names next chief executive

Andy Joy to be promoted to CEO as Jason Butterwork becomes vice chairman
4 hours ago

Stalled £100m North London build-to-rent tower to start

Essential Living commits to start Swiss Cottage scheme six years after planning OK'd
13 hours ago

Bidding starts for Pagabo £1bn medium works deal

Extra small project lot added in framework renewal
5 hours ago

Vital funding deal for £50m A38 Midlands upgrade

Work could start early next year on A38 BREP now out to tender
5 hours ago

Graham wins £16m National Railway Museum job

Firm seals pre-construction deal as new museum Central Hall gets planning green light
5 hours ago

Demolition starts on half-built £48m Taylor Wimpey flats

Furious local residents blast house builder over "unbearable" noise
3 days ago

Civils contractor fined £600k after boy dies in drainage pipe

Workers find seven-year-old who suffocated on housing site
4 days ago

Plan for trio of towers at old Yorkshire Post site

Galliford Try advises on construction plan for Leeds student and build to rent towers
3 days ago

Insolvency to rival inflation as project cost threat

Inflationary pressures likely to peak this year before easing in 2023, but supply chain stress is growing.
3 days ago

B+K starts £300m Sheffield West Bar scheme

Funding deal triggers start on major mixed-use scheme
3 days ago

Willmott Dixon bags £44m Passivhaus leisure centre

Private builder prepares to start Staines-upon-Thames complex
3 days ago

Go-ahead for £160m Cambridge mixed-use scheme

Devonshire Gardens will consist of 70 private rental flats and 120,000 sq ft of offices
3 days ago

Construction buyers report first drop in output for 18 months

Civil engineering worst performing sector
4 days ago

Construction and infra margins hit 3.2% at Morgan Sindall

Contractor picking deals carefully as inflation continues to bite
4 days ago

Morrisroe Group revenue tops £200m

Pre-tax profit halves to £2.7m as cost inflation bites
4 days ago

Kier to start new £400m ‘smart’ prison this autumn

At least 50 ex-offenders will help build new HMP Full Sutton
5 days ago

Former P&R Morson staff to launch legal claim

Former staff of failed Midlands M&E specialist consult with lawyers following administration
4 days ago

Eight firms win big north west MMC housing deal

JV North consortium plans to build 4,000 homes by 2026
4 days ago

Balfour to replace Ringway Jacobs on £176m Bucks highways deal

Balfour to start new eight-year maintenance contract in 2023
5 days ago

O’Keefe suppliers owed £13m despite Byrne rescue

Unsecured creditors to get less than 2p in the pound for their debts
6 days ago

Taylor Wimpey staff to get £1,000 towards fuel bills

All staff earning below £70,000 will receive a one-off payment
5 days ago

Equans bags Birmingham 300 council homes retrofit pilot

Council homes retrofit trial will test way for ambitious 60,000 homes decarbonisation plan
5 days ago

Van Elle returns to profit after £125m record revenue

Piling contractor restores dividend after work rebound delivers £3.6m profit
5 days ago

Race for places on £2bn housing decarbonising deal

South west central procurement body starts race for places
5 days ago

Kier signs off £36m Liverpool school job

Work to start on new Deyes High School in Maghull
5 days ago

WSP buys property and infra businesses from Capita

Consultant pays £60m for GL Hearn and Capita Real Estate and Infrastructure
6 days ago

Leeds unitised facade contractor crashes

Jobs axed as Glasshus Facades falls into administration
6 days ago

Morgan Sindall wins £61m Abergavenny super school job

Existing King Henry VIII High School will be replaced by a 1,900 place all-through school
6 days ago

Contractor services