JT Dove reports profit
Published: 14 June, 2012
NEWCASTLE: JT Dove has returned to profit with a surge of home improvement activity.. Turnover is up from £24.6m to £28.2m in the 12 months to December 2011.
Pre-tax profit at £535,000, was up from a £64,000 loss in the previous year. Dove opened three standalone plumbing and heating sites at Ashington, Birtley and Newburn, and moved its head office to Newburn Haugh Industrial Estate on Riverside Way in Newcastle.
The company operates from 12 sites that encircle the major towns and cities of the North East, a model which it believes allows it to be more responsive to its customers, rather than handling orders through its former Newcastle headquarters.
Builders merchant branches saw sales improve by 22% with the company’s Boldon branch, bought in late 2010, making a full year’s contribution. Despite the continued poor house building market, which saw the firm’s Tyne Dock branch experience a fall in sales, the plumbing and heating branches continued to mature seeing 40% growth.
The directors' report says: “The large sales improvements in what was still a relatively static market in our geographical trading regions, was largely a testament to the branch development programme the business has rolled out over the last few years.
“Our 2012 budget forecasts a further growth in sales and we expect the new look business to improve profitability throughout the year as we continue to take market share from our competitors through our new branches.
“Our new plumbing and heating standalone unit will be a cornerstone to this growth as we will have units on 10 of our 12 sites. We believe that the restructured and expanded commercial base of the business will enable the company to take advantage of any economic upturn or to cope with a subdued market.
“Our balance sheet remains strong and we continue to have the committed financial support of our bank.”
The company has made a loss in the last two years but is still in a healthy financial position with shareholder funds of almost £10m.