Good year for Dunelm
Dec 14 2007 by Graeme King, The Journal
THE housebuilding division of County Durham’s Esh Group has reported it is heading for a massive 60% rise in both sales and profits for 2007.
Dunelm Homes, based in Newton Aycliffe, has had a successful year despite the wider housing market showing signs of slowing – and bigger regional rivals Barratt and Bellway have both employed deposit payment schemes to keep sales ticking over.
Last year Dunelm posted sales of £20m and completed 150 homes, whereas this year the company is expecting £32m sales and around 250 homes.
The ambitious company, the fastest-growing arm of Esh Group, has said before now that it aims to drive those numbers on up to £80m and 400 homes in five years’ time.
Yesterday, ahead of a full financial statement after the close of 2007, Dunelm’s managing director Phil Brown said the company was very happy with the way its business was developing.
Dunelm currently has 15 sites being developed throughout the North-East from Stockton in the south to Alnwick in the north. The company says it differentiates itself from competitors by aiming to combine technology and tradition to produce well built homes.
It has managed to drive its sales and operating profits up by 60% by doubling the number of new housing development projects it is working on in the last 12 months. Mr Brown said: “The growth in sales, profits and earnings is firmly rooted in a strong performance in the North-East new homes marketplace.
“Despite a reported downturn in the housing market, Dunelm Homes’ broad range of new properties, and the affordable packages on offer to new homeowners and those already on the property ladder have seen customer numbers increase significantly.
“We’re confident in the quality of our brand, and believe it’s ideally placed to respond to market conditions over the forthcoming year.”
However Mr Brown acknowledged that Dunelm can expect tougher market conditions in 2008 as various members of the housebuilding industry have been indicating.
He said: “Everybody in the industry has done well this year, though forecasts are not great overall.”
Dunelm has invested in several sites across the North-East in recent times. These include schemes in Gosforth, Killingworth and at Elvet, Durham. The Gosforth site, former university accommodation, involves a mix of 42 apartments and houses, while Killingworth is one of Dunelm’s largest sites with room for 130 properties. Dunelm’s three-acre site at Elvet could be worth up to £40m but work is not due to begin until 2009.
