Miller Group has hailed a buoyant commercial property market in Aberdeen as a key factor in profits soaring by nearly 60% during 2013.
Demand for sites in the Granite City helped operating profits at the company’s development arm surge by 56% to £8.4million, while group pre-tax profits rocketed by 57.6% to £10.4million.
Revenue grew by 32% to £817.3million, while net debt fell by 16.4% to £168.8million.
Miller said an upturn in the UK economy also fuelled the firm’s stronger performance last year, with confidence returning to many key markets after years of restraint.
Chief executive Keith Miller said: “All our businesses are now well-positioned to take full advantage of improving market conditions.
“This is a strong set of results.”
Miller Development’s current projects in Aberdeen include the D2 Business Park, a £400million project covering 100 acres. D2, next to Aberdeen International Airport, will provide 1.4million sq ft of new office, industrial and distribution space, making it one of the biggest office and industrial developments in Scotland for years.
A major shareholder in Norwegian oilfield service group Aker Solutions has already bought about one-third of the site, where it aims to build at least 300,000 square feet of offices, plus restaurants, cafes and a gym.
Miller Developments is also responsible for the largest development at Fort William for 20 years – a £50million project on a 105-acre site at Blar Mhor.
A joint-venture with Aberdeen company Cromdale is behind the £16million-plus new Granite City offices for energy firm GDF Suez Exploration and Production UK.
Miller’s construction division, whose recent and ongoing projects include the £17million Aberdeen Community Health and Care Village and £60million-worth of work on the new Inverness College UHI building, suffered operating losses of £4.6million last year. Mr Miller said the construction division had taken action to deal with loss-making contracts and was now “focused on frameworks and aligned to clients with long-term programmes of work”.
The group’s housebuilding arm, Miller Homes grew operating profits by 57% last year, to £22.8million, as market conditions improved.