Key Performance Indicators
Definition and performance
Definition
This represents revenue which is predominantly generated through the sale of both private and affordable new homes and to a lesser extent from the sale of land, where it is capital efficient to sell a portion of larger sites, and from the sale of timber kits.
Performance
Revenue increased by 57% in 2021 reflecting a 48% increase in core completions and a 5% increase in ASP. Revenue from land and other sales increased to £9.4m (2020: £1.3m).
Definition and performance
Definition
This represents revenue from new home sales divided by the total number of core completions. In line with standard accounting practice, this excludes revenue from homes sold through joint ventures, the profit on which is shown within “share of result in joint ventures”. It measures movements in revenue per unit caused by house price inflation, location or mix changes.
Performance
ASP increased by 5% to £275,000 (2020: £261,000). This reflected a 6% increase in the private ASP to £320,000 (2020: £303,000) and a 15% increase in the ASP of affordable homes to £139,000 (2020: £121,000). The improvement in ASP more than offset the impact of an increase in the proportion of affordable homes which rose to 25% (2020: 23%) of core completions
Definition and performance
Definition
This represents gross profit excluding exceptional items divided by revenue. It measures the Group’s underlying profitability before administrative expenses.
Performance
Gross margin adjusted for exceptional items increased to 25.0% (2020: 23.6%). The improvement was mainly driven by the benefit of higher margins from new site launches and the favourable impact of house price inflation.
Definition and performance
Definition
This represents operating profit excluding exceptional items divided by revenue. It measures the Group’s underlying profitability after administrative expenses.
Performance
The increase in 2021 reflects higher gross margins and improved overhead recoveries.
Definition and performance
Definition
This represents operating profit excluding exceptional items expressed as a percentage of average capital employed, which is the average of the opening and closing balances of capital employed for each financial year.
Performance
The increase in ROCE in the year reflects the increase in profitability achieved in the year.
Definition and performance
Definition
This represents cash generated in the year excluding cashflows from financing activities, investing activities (other than movement in loans to joint ventures and the acquisition of Wallace Land and Walker Timber), corporation tax paid, interest paid and transaction costs.
Performance
Free cash flow generated increased to £173m (2020: £92m) as a result of the increased revenues achieved.
Definition and performance
Definition
This represents the number of reservations (net of cancellations) for private homes (including those sold via joint ventures) divided by the average number of sales outlets and further divided by the number of weeks in each financial year.
Performance
The private sales rate of 0.85 reservations per site per week was a record high for the Group and reflects continued strong market conditions following the easing of COVID-19 restrictions.
Definition and performance
Definition
This represents land from the Group’s owned and controlled landbanks. All land in the consented landbank benefits from at least an outline planning consent, or a resolution to grant planning consent.
Performance
The owned landbank increased by 15% to 12,057 plots (2020: 10,494 plots) reflecting significant land investment in 2021, following a temporary suspension in 2020 as we assessed market conditions following the first national COVID-19 lockdown.. The controlled landbank decreased to 3,112 plots (2020: 4,173 plots) resulting in an overall 3% increase in the consented landbank. The consented landbank represents 4.0 years’ supply based on 2021 output.
Definition and performance
Definition
This represents land which the Group has secured via an option to purchase at a future date on receipt of an implementable planning consent. The land currently does not benefit from a planning consent although it may have been allocated for residential development in the relevant local plan.
Performance
The strategic landbank increased by 89% in 2021 to 39,222 plots (2020: 20,776 plots). The majority of this increase is due to the acquisition of Wallace Land in May 2021 which added 17,415 plots to the strategic landbank.
Definition and performance
Definition
This represents the value of new home reservations and contracts exchanged at each financial year end which are anticipated to result in core and joint venture completions in the following 12 month period.
Performance
Forward sales increased by 19% to £665m (2020: £560m). This is a record for the Group which is a reflection of record private sales rates achieved during 2021.
Definition and performance
Definition
This represents an external assessment, performed by the National House Building Council (NHBC) on behalf of the Home Builders Federation (HBF), and measures overall satisfaction of our customers in respect of both the quality of their new home and the service provided.
Performance
The Group continued to operate with high levels of customer satisfaction and in March 2022 was awarded the HBF 5 star rating customer satisfaction for the tenth time in the last eleven years.
Definition and performance
Definition
This represents the total number of accidents reportable under RIDDOR as expressed by 100,000 employees and subcontractors.
Performance
The 18% increase in accident rates is disappointing but comes on the back of 3 years of consecutive improvement. Plans have been established to address the accident levels experienced in 2021.
Financial Group Summary
|
2021 £m |
2020 £m |
2019 £m |
2018 £m |
2017 £m |
|
|---|---|---|---|---|---|
| Group revenue | 1,045.8 | 664.8 | 841.4 | 747.0 | 674.0 |
| Gross profit* | 261.6 | 156.7 | 210.7 | 192.0 | 170.4 |
| Operating profit before financing costs* | 203.6 | 114.8 | 167.9 | 151.1 | 131.1 |
| Operating margin* | 19.5% | 17.3% | 20.0% | 20.2% | 19.5% |
| Profit before tax* | 156.1 | 64.4 | 122.1 | 102.1 | 109.3 |
| Net assets | 496.1 | 378.6 | 332.1 | 239.6 | 157.8 |
| Net external debt | (241.4) | (200.9) | (251.5) | (299.9) | (303.4) |
| Capital employed (excluding intangible assets) | 595.5 | 588.1 | 578.0 | 521.9 | 472.7 |
| Return on capital employed* | 34.4% | 19.7% | 30.5% | 30.4% | 28.7% |
| Unit sales | |||||
| Core completions | 3,775 | 2,544 | 3,328 | 2,954 | 2,698 |
| Total (including joint ventures) | 3,849 | 2,620 | 3,498 | 3,170 | 2,775 |
| Average selling price (£'000) | 275 | 261 | 249 | 249 | 239 |
The figures above represent the results of Miller Homes Group Holdings plc. 2017 figures represent full year pro forma figures. * Pre-exceptional items