Financial information & KPIs

Key Performance Indicators

Revenue (£m) £1,046m +57%
2021 1,046 2020 665 2019 841 2018 747 2017 674

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).

Average selling price (£000) £275,000 +5%
2021 275 2020 261 2019 249 2018 249 2017 239

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

Gross margin (%) 25.0% +1.4%
2021 25.0 2020 23.6 2019 25.0 2018 25.7 2017 25.3

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.

Operating margin (%) 19.5% +2.2%
2021 19.5 2020 17.3 2019 20.0 2018 20.2 2017 19.5

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.

Return on capital employed (%) 34.4% +14.7%
2021 34.4 2020 19.7 2019 30.5 2018 30.5 2017 28.7

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.

Free cashflow (£m) £173m +89%
2021 173 2020 92 2019 84 2018 82 2017 75

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.

Private sales rate (per site per week) 0.85 +33%
2021 0.85 2020 0.64 2019 0.64 2018 0.67 2017 0.70

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.

Consented landbank (plots) 15,169 +3%
2021 15,169 2020 14,667 2019 13,633 2018 12,524 2017 13,738

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.

Strategic landbank (plots) 39,222 +89%
2021 39,222 2020 20,776 2019 20,035 2018 17,331 2017 16,561

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. 

Forward sales (£m) £665m +19%
2021 665 2020 560 2019 328 2018 292 2017 276

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.

Customer satisfaction (%) 92% -1%
2021 92 2020 93 2019 93 2018 91 2017 91

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.

Health and safety 535 +18%
2021 535 2020 454 2019 437 2018 484 2017 541

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.

* As at the end of December 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