Key Performance Indicators
Definition and performance
Definition
This represents revenue that is predominantly generated through the sale of new private, affordable and Partnership homes; and to a lesser extent, revenue from the sale of land, where it is capital-efficient to sell a portion of larger sites; and revenue from external sales generated by Walker Timber.
Performance
Revenue increased by 4% in 2024. This was mainly due to a 6% rise in core completions offset by a 2% reduction in ASP, both of which were driven by the planned rise in Partnership homes which increased to 24% (2023: 11%) of core volumes.
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 home completion caused by house-price inflation, location or mix changes.
Performance
ASP fell by 2% to £282,900 (2023: £287,700) which reflected a reduction in the proportion of higher-value private-home completions falling to 57% (2023: 70%) with Partnership homes increasing to 24% (2023: 11%). Private ASP was 2% ahead at £346,500 (2023: £341,300). This compared to increases of 7% and 29% in the ASPs of affordable homes and Partnership homes to £169,200 (2023: £157,700) and £221,600 (2023: £171,400) respectively.
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
The reduction in 2024 was mainly because of the impact of cost inflation in 2023 which was incurred progressively during that year. This meant margins started at 23.1% in Quarter 1 and fell to 21.0% in Quarter 4, and averaged 22.0% for the year as a whole. In contrast, 2024 has witnessed a flat and stable cost environment which has led to relatively consistent margins during the year.
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 reduction in 2024 principally reflects lower gross margins as explained previously, and lower recoveries of administrative expenses which as a percentage of revenue increased to 7.1% (2023: 6.8%).
Definition and performance
Definition
This represents operating profit excluding exceptional items, expressed as a percentage of average tangible capital employed, which is the average of the opening and closing balances of tangible capital employed for each financial year. Tangible capital employed of £690.1m (2023: £678.7m) represents net assets of £627.8m (2023: £585.8m) excluding loans and borrowings of £787.4m (2023: £798.3m), cash of £234.3m (2023: £194.2m), lease liabilities of £8.4m (2023: £7.6m), a foreign-exchange swap liability of £9.5m (2023: asset of £10.1m), intangible assets of £551.7m (2023: £551.7m) and deferred tax on intangible assets of £43.0m (2023: £43.0m).Performance.
Performance
The small reduction in the year reflects an increase in capital employed as a result of higher land investment.
Definition and performance
Definition
This represents cash generated in the year of £40.1m excluding cash flows from financing activities of £3.1m, investing activities (other than movement in loans to/dividends from joint ventures) of £2.8m, corporation tax paid of £22.7m and interest paid of £68.3m.
Performance
Free cash generated in the year equated to an EBITDA conversion ratio of 85%, which is higher than the Group’s medium-term target of 50% which benefitted from improved deferred terms on land acquisitions, tight control of working capital and increased Partnership activity.
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 increased by 20% in 2024 to 0.65 which is in line with the average sales rate for the previous decade.
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 rose by 17% to 12,219 plots (2023: 10,483 plots) following the purchase of 29 sites which led to 5,500 plots being added to the landbank. The controlled landbank fell to 1,476 plots (2023: 3,577 plots) as 7 former strategic sites (2,450 plots) and 3 formerly contracted sites (579 plots) were acquired in the year. This resulted in an overall consented landbank of 13,695 plots (2023: 14,060 plots).
Definition and performance
Definition
This represents land the Group has secured via either an option to purchase at a future date or a promotion agreement triggered 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 slightly to 43,317 plots (2023: 43,293 plots) as the Group sought to maintain the landbank at prior year levels, underpinning its medium-term growth aspirations. The increase largely reflected the impact of new option agreements entered into during the year offset by site acquisitions with resulted in the associated plots being transferred to the owned landbank.
Definition and performance
Definition
This represents the value of new home reservations and contracts exchanged at each financial year end for all three tenures, which are anticipated to result in core and joint venture completions in the following 12-month period.
Performance
Forward sales increased by 4% to £455m (2023: £437m) and reflected a 17% increase in private home reservations as a result of more favourable market conditions in the second half of 2024 in contrast to the comparable prior year period.
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 our customers’ overall satisfaction with both the quality of their new home and the service provided.
Performance
In March 2025, the Group was awarded the HBF five-star rating for customer satisfaction for the 13th time in the last 14 years.
Definition and performance
Definition
This represents the total number of accidents reportable (AIR) under RIDDOR as expressed by 100,000 employees and subcontractors.
Performance
There was a 25% improvement in the AIR score in the year as a direct result in a fall in the number of reportable accidents.
Financial Group Summary
|
2024 £m |
2023 £m |
2022 £m |
2021 £m |
2020 £m |
|
|---|---|---|---|---|---|
| Group revenue | 1,060 | 1,015.9 | 1,169.0 | 1,045.8 | 664.8 |
| Gross profit* | 228.6 | 223.5 | 282.5 | 261.6 | 156.7 |
| Operating profit before financing costs* | 156.6 | 157.1 | 217.3 | 203.6 | 114.8 |
| Operating margin* | 14.8% | 15.5% | 18.6% | 19.5% | 17.3% |
| Profit before tax* | 71.1 | 77.0 | 144.3 | 156.1 | 64.4 |
| Net assets | 627.8 | 585.5 | 537.1 | 496.1 | 378.6 |
| Net external debt | (571.0) | (601.6) | (599.8) | (241.4) | (200.9) |
| Capital employed (excluding intangible assets) | 690.1 | 678.7 | 628.2 | 595.5 | 588.1 |
| Return on capital employed* | 22.9% | 24.0% | 35.4% | 34.4% | 19.7% |
| Unit sales | |||||
| Core completions | 3,698 | 3,475 | 3,921 | 3,775 | 2,544 |
| Total (including joint ventures) | 3,813 | 3,585 | 3,970 | 3,849 | 2,620 |
| Average selling price (£'000) | 283 | 288 | 286 | 275 | 261 |
The figures above represent the results of Miller Homes Group (Finco) plc for 2023 and 2022. 2022 figures represent full year pro forma figures. The figures for 2019 to 2021 above represent the results of Miller Homes Group Holdings plc. * Pre-exceptional items