BUILDERS’ merchants JT Dove has got off to a flying start in 2011 with revenues up 27% for the first quarter but the company remains cautious on the outlook for the rest of the year.

Results published for 2010 show the Newcastle-based business held revenues steady at £24.6m with losses narrowing from £690,000 to £100,000.

After three years of sluggish performance the company, which has 12 outlets across the region, saw an improvement in quarter one this year.

Managing director Steve Robinson puts the recent improvements down to a combination of macro and micro factors.

On the macro front with new house building still stagnant there has been a surge of home improvement activity.

“After three years of recession, with mortgages still hard to get and house prices falling people have started to improve their properties.

“The new house building sector has not come back, it is still dire, but the private repair and maintenance market has picked up dramatically.”

In the last few years the company has spent £4m on a branch refurbishment and acquisition programme which has included relocating its head office to the outskirts of Newcastle.

“We are a people industry with good staff and a good offering. Both our customers and staff are benefiting from our substantial branch investment programme,” added Robinson

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.

In the 1960s previous owner Herbert Dove reconfigured the company into a trust along similar lines as the John Lewis Partnership so when it makes a profit the employees can share in its success.