Housing upturn delights JT Dove

Apr 14 2010 by The Journal

ONE of the region's biggest building materials suppliers is continuing its expansion in preparation for a recovery in the housing sector.

Newcastle-based JT Dove has launched three sites in Birtley, County Durham, Ashington, Northumberland and Newburn in Newcastle, over the last 12 months and is looking to open more shops in Hexham and Stockton as growth returns to the property market.

The firm, which recently moved out of its Newcastle city centre head office behind Central Station to a site in Newburn, has suffered from the lack of new-build housing developments over the last two years, which has seen its turnover dip by around £3m to £30m.

The company, which has traded for over 140 years and now operates from 17 sites throughout the North East, has also seen its workforce drop from 175 to 150 through natural wastage, which has slowed the rate at which the firm has been able to expand.

However, managing director Steve Robinson believes that the company can reverse its recent fortunes and exceed sales of £32m this year after witnessing an increase in orders from its private housing clients.

Mr Robinson said: “As with many companies working within construction, or directly related to the building trade, we have suffered at the hands of the recent recession.

“As a result we have been unable to replace the staff that have left the company and seen a decline in our revenues.

“We had expected to have opened more shops by this point, but our expansion plans have been affected by the slowdown.

“However, there is a growing recognition that the country is in desperate need of new housing, whether that be social or private, and we have already seen a pick up in orders as housebuilders prepare themselves for a pick up in the market.

“The good news is that we have not had to make any redundancies and hope to get back to the position we were in pre-recession by next year.”

As well as basing its expansion on a satellite office model, the company has also diversified during the downturn with the launch of a heating and plumbing arm as well as a paving centre in Gateshead.