BoS acquires stake in Miller Group

by Gill Montia

Story link: BoS acquires stake in Miller Group

Bank of Scotland (BoS) has acquired a stake in Miller Group, the privately owned construction firm that is one of Scotland’s biggest companies.

Full details of the transaction have not been disclosed but according to BoS’ usual practice, the stake would range from between 15% and 30%.

Miller Group is expected to report its first fall in profits for 13 years this year, as a result of challenging times in the housing market. Last year, the firm posted a profit of £81 million on turnover of £1.2 billion.

Miller chief executive, Keith Miller, believes that the injection of cash by BoS gives the business “a much more secure footing to take advantage of opportunities”.

Peter Cummings, chief executive at Bank of Scotland Corporate, says: “Bank of Scotland are a through-the-cycle lender and investor, with this investment demonstrating our understanding of the fundamentals of this group and the long-term dynamics of the sectors in which it operates.”

BoS has increased its interest in the housebuilding sector recently, investing in McCarthy & Stone (the retirement home specialist) and Cala.

Despite the gloomy outlook for housing developers, as mortgage options decline and potential first-time buyers struggle with hefty deposits, the provision of new homes forms a central part of Government policy, which is targeting three million new dwellings by 2020.