JLA reports turnover figures following buyout integration

JLA is focusing on growing market share within its existing core business segments.

Servicing specialist the JLA Group has seen its overall group revenue grow by 9.5% to £106.9m in the 12 months to 31 October 2016, according to the latest publicly available accounts from Companies House.

The Ripponden-based firm is involved in several sectors, including catering, laundry, consumables and equipment compliance and safety.

JLA’s strategic vision comprises looking to grow market share within its existing core business segments, along with identifying opportunities for growth in adjacent markets through both organic product and service development and strategic acquisitions.

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The company’s directors reported that: “A number of key strategic work-streams related to revenue growth efficiency and operational excellence will deliver the strategic vision and are supported by both the significant cash generation from the business and an appropriate level of funding.”

The firm decided to cease trading of its design and build and light equipment operations within its catering division, as these discontinued operations made an operating loss of £2m in the prior year. Nevertheless, the overall catering division has recorded double digit growth, year on year.

JLA inherited several design and build departments from the seven dealers it bought out within an 18 month period. These were: Carford, Red Squared, CKM, Proton Washrite, Harmony Business & Technology, Comcat Engineering, and in the 2016 accounting period, Newco Catering Equipment.

Subsidiary JLA Ltd, which involves part of the catering and laundry divisions, saw its revenue for the 12 months to 31 October 2016 fall by 12.2% to £33.8m, according to a separate report filed at Companies House. JLA pinned the drop from the 2015 figure of £38.5m on being “driven by a re-focusing of the range of catering products offered, to focus on assets that provide an acceptable gross margin”.

 

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6 Comments

  1. Cive Groom said:

    They must have one hell of a “spin doctor”, pay a huge amount to aquire some good companies, destroy them, see a big drop in business and seemingly boast about it !

  2. Bill Moore said:

    Buying low margin companies carrying out design & build work is a recipe for disaster!
    They have also learnt a lesson that size without knowledge & professionalism is not profitable!

  3. Ey Up Tha Knows sithee said:

    we up here in Yorkshire have a word for this kind of story Clive, it starts with B, ends with S and has ollock in the middle!

  4. Malcolm said:

    You can’t just buy your way into this industry, it’s built on long term relationships, depth of offer and knowledge about specific client needs, so I totally agree with both Bill’s and Clive. The companies JLA appeared to purchase specifically for their service coverage requirements just gave other design & build dealers further opportunities to grow their respective business. There was no “inherited several design and build departments from the seven dealers”, JLA did not inherit, they knew exactly what they were purchasing, design & build businesses in the main, Carford, CKM etc. that had an in house service provision.

  5. David Banner said:

    Should the Headline not read “JLA Catering and laundry divisions, saw its revenue for the 12 months to 31 October 2016 fall by 12.2%”…….More spin #FAKENEWS!

    • Clare NichollsClare Nicholls said:

      At Catering Insight we do our best to report the facts as accurately as possible. The very definition of fake news is a completely invented story. This absolutely does not qualify as that.

      If you have any concerns about our editorial policies please do contact us, our details are available here: http://www.cateringinsight.com/contact/

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