DJI_0963

Corporate Review

As we conclude 2021, we should be proud of the excellent measures implemented to safeguard our staff, supply chain and stakeholders during a continually evolving situation – this has been, and will always remain, our priority. Just like many other businesses, the Group has had to operate through the unprecedented challenges posed by the global COVID-19 pandemic, and since March, has had to adapt to try to best mitigate the economic impact of rapidly escalating costs, chronic resource shortages and extended delivery periods. The current market conditions are extreme and have impacted all projects, not only in terms of cost, but our ability to maintain original delivery schedules, conditions that are affecting all businesses operating within our sector.

The economic uncertainty will sadly remain into 2022, as we see the impact of Brexit continue to play-out and affect labour and European material resourcing, while we are yet to see the full impact of rising energy costs filter through to production biased materials. Changes to building regulations will also see a significant shift in emphasis, particularly in relation to thermal and energy performance, and this is something we have been preparing for, for some time. Managing our way through a pandemic now seems the norm.

Undoubtedly, previous investment in the Group’s IT in terms of equipment and infrastructure, has played a significant role in allowing the business to adapt to the modified ways of working required over the past year. A positive outlook has allowed us to continue this strategy, and we have made further substantial investment to replace our central data management platform, implementing a new, more intuitive Project Information Management System. This will streamline our internal operational process, from opportunity identification and bid stage, through the life of a project, to the conclusion of our aftercare responsibility.

The improved infrastructure has also allowed the development of a new contemporary website, which will ‘go live’ in January 2022, really reinforcing the strong brand that the Jarvis name enjoys. As the business has adapted, we have also remodelled our office environment to facilitate hybrid working practices, with many of our teams able to work remotely.

Statistics

47.9M

Turnover

97%

Forecast Turnover Secured

£15.9m

Assets

65%

Committed Sales

Importance continues to be placed on the robust processes that the company has in place, and during the year, these were further strengthened by our audits for Quality Management (ISO9001) and Environmental Management (ISO14001), alongside our Health & Safety Management (ISO45001). Our Corporate Social & Sustainability responsibility is something that has always been embedded within our culture, and in 2021 we launched our strategy to achieve our Net Carbon Zero aims.

Our Development arm continues to deliver outstanding homes within Harpenden and the surrounding area, which have been the benchmark for local properties since our inception. Sales remain very strong, with a number of new schemes already in the pipeline for 2022, and further sites identified behind these.

Despite the challenges, as a Group we were recognised with multiple industry and local awards, validating the hard work and quality of our staff, who have played such a vital role in how we’ve managed through the past two years.

The management and staff remain as committed as ever, and benefitting from our strong financial stability, excellent pipeline of high quality work, technical expertise and robust processes, we are confident that we are very well placed to tackle the challenges ahead, where sadly some of our peers may not.

Financial Summary
Results 2021 2020
£m £m
Turnover 68.1 47.9
Gross Profit 6.3 6.2
Gross Margin 9.3% 13.0%
Operating Profit 1.1 0.5
Operating Margin 1.7% 1.1%
Profit Before Tax 0.9 0.4
Net Cash 15.8 8.8
Net Assets 16.2 15.9
Order Book Contracting Developments
Secured Contracts 98%
Committed Sales 60%