Developer on course to reach expansion target
Property and construction business Jehu Group has announced strong end-of-year results for 2016-17, with turnover at an all-time high.
The group reported that turnover had jumped over 20% from £34.5m to £41.9m over the last 12 months. It is now on track to meet its ambitious two-year growth strategy, with hopes to increase these figures to £65m by March 2019.
Jehu, which has around 20 active developments at any one time across the south Wales region, has seen the average size of larger contracts rise, with 280 affordable housing units and 24 luxury homes being delivered during the year.
The boost in revenues has helped the group increase its pre-tax profit by 43%.
A significant proportion of the group’s growth has come from its residential property developer Waterstone Homes, which has seen turnover increase from £9m to £21.4m over the year.
The luxury house-builder has sold-out developments in Swansea, Dinas Powys and Tenby, and is currently working on a number of projects, including properties in St Nicholas and Broad Haven.
The property developer also gained national industry recognition after being awarded two International Property Awards for schemes under development for 2017-18, including Tusker’s Point, a collection of seaside homes in Ogmore-by-Sea
The third-generation family firm, which is led by Simon and Marc Jehu, grandsons of the company’s original founder Jack Jehu, attributes its success to strategic long-term planning as well as investment in its supply chain.
The company is now calling on other Welsh businesses in the sector to collectively boost Wales’ construction industry by strengthening working relationships with their supply chains and subcontractors to develop capacity and skills in the sector.
Andrew Lycett, finance and operations director at Jehu Group, said: “It’s been a great year for Jehu, with the business having delivered an excellent performance over the last 12 months with our end-of-year figures up £7.3m on last year.
“Our capital and profits remain strong, with all of our businesses, including our luxury property developer arm Waterstone Homes, making a significant contribution this year, while our contracting workload has contributed to our resilience. This is good news for both our clients and supply chain.
“Valuing and supporting our suppliers has been instrumental in our results and we are continuing to work closely with them on a collaborative approach, ultimately improving health and safety procedures, staff wellbeing and overall performance on both sides. This year’s success also places us perfectly to meet the targets laid out in our growth strategy.”
In addition to strong financial results, Jehu Group has also seen its headcount increase by more than 22% in the past 12 months, with the company now employing more than 150 people.
With fierce competition for talent across the sector, the company has worked hard to demonstrate the value it puts on its workforce in order to maintain its high staff retention levels, implementing healthcare packages as standard to all employees and offering competitive salary packages.
Simon Jehu, managing director of development at Jehu Group, said: “After more than 80 years of trading, Jehu Group continues to go from strength to strength and our outlook for the future is robust.
“While political and economic uncertainty has impacted the financial landscape and provided concerns for the construction industry, our balance sheet remains strong and stable. We are very excited for the future of the business.
“Our focus has always been on growing the company organically and our plans are to continue to invest significantly in our practices and workforce, to continue this steady growth, improve our services and create a sustainable, reputable business that will continue to thrive not just now, but that will be here for at least another 80 years to come.”