Last updated 30 July 2022
Jones Bros. Ruthin (Civil Engineering)
Jones Bros is a privately-owned contractor established more than half a century ago. The group works predominantly on civil engineering projects in its native Wales but also operates across the UK in select areas, particularly on wind farm projects and waste management.
The group has its headquarters in Ruthin, turns over more than £110 million a year and directly employs nearly 500 people.
Financials
In the year to March 2022, turnover slipped back to £115.9 million (2021: to £141.1 million (2020: £79.6 million) and profitability retreated. Before tax, profit fell to £3.4 million (2021: £4.6 million) and at an operating level, profits dropped to the same level of £3.4 million (2021: £4.6 million).
To view the financials for Jones Bros. Ruthin (Civil Engineering) Co. Ltd, visit Companies House and use Company ID 00983459.
Operations
Jones Bros works in energy and renewables, coastal and marine infrastructure, highways, infrastructure, waste remediation, surfacing, slurry lagoons, quarrying and plant hire.
Jones Bros works with clients ranging from Natural Resources Wales to the Welsh Assembly and RWE Innogy. Jones Bros also works on wind farm projects, where not all of the contract value relates to the company. Typically, Jones Bros will provide civil engineering services but not necessarily the wind turbines, which constitute a significant element of the cost.
The company has also expanded successfully out of its North Wales heartland and public sector work in the Principality. The Welsh Assembly and local authorities in Wales, such as Powys County Council, remain clients but after opening a south Wales office in 2010, Jones Bros subsequently moved to Scotland and expanded into the wind farm sector and other renewables schemes.
Recent renewables schemes range from the £31 million Morlais Tidal Energy Lagoon in Llangefni, Gwynedd (Project ID: 18180654) to the £3 billion Sofia Wind Farm Expansion at Redcar (Project ID: 19144506), which is the world’s largest offshore wind farm.
Jones Bros works on cabling packages on major schemes such as the first length of HVDC export cable on the Dogger Bank wind farm (Project ID: 15378655).
Jones Bros is also on a number of long-term framework agreements, which are expected to generate high value of spending. Examples include the £1.6 Civils & Infrastructure Framework (Project ID: 21270187) and the £1.1 billion National Framework for Demolition and Land Preparation Works (Project ID: 21352602).
On some major projects Jones Bros works in JVs, such as £92 million A487 bypass project at Caernarfon for the Welsh Assembly with Balfour Beatty. On wind farms, Jones Bros also works with Balfour Beatty and ABB.
Glenigan Data
In the 12 months to Q2 2021, the order book for main contracting work leapt to £122.1 million (2021: £9.4 million) and the group returned to Glenigan’s ranking of the construction industry’s Top 100 contractors in 68th position.
Conclusion: Ready to power up again
Expansion into renewables had helped Jones Bros break into Glenigan’s ranking of the UK’s top 50 contractors surge in wind farm work but since then, traditional main contractor work subsided as the group moved away from broader civil engineering projects into more specialist or long term work, including landfill, waste removal, waste management and remediation services.
Growth had stalled in the run-up to the outbreak of Covid-19. Revenue then doubled in 2021 This performance was a reward for the group’s decision to expand during the recession and continue to investment in its plant fleet as the group began pumping more resources into pursuing work in the renewables sector. The management plan was that as large roads projects drew to a close, this work would be replaced by work on wind farms.
However, revenue receded in the latest trading period as RJ McLeod continued to feel the impact of the pandemic. Operating margins have fallen to 2.9% (2021: 3.6%). This is still in the upper percentile for a contractor predominantly focused on civil engineering, which provided 87% of the latest order book by value but some building work has finally crept into the mix.
The group had been taking on projects where clients were looking to reduce costs, such as £17 million King’s Dyke scheme in Cambridgeshire (Project ID: 15360880). This suggests a less selective approach during the worst of the pandemic. While work on King’s Dyke is nearing completion, the risk profile has continued to rise. The average contract awarded in the 12 months to Q2 2022 valued at £12.2 million (2021: £2.3 million) according to Glenigan’s research.
The closure of an office in Inverness subsequently reduced overheads and in 2022 the workforce was trimmed by 2.7% to an average of 462 employees (2021: 475 employees). This had little impact on the wage bill, which firmed to £18.3 million (2021: £18.2 million), while cash at the bank fell to £18.7 million (2021: £32.4 million).
The group is however financially stable with no debts, has a strong health and safety record – in 2021, Jones Bros was awarded a 13th consecutive gold award by The Royal Society for the Prevention of Accidents – and a strong order book. With infrastructure work expected to be subject to continuing significant investment, the company’s prospects look healthy.
Winning Work With Jones Bros
Jones Bros is accredited to ISO 9001, ISO 14001 and OHSAS 18001, certified for the National Highways Sector 16 for the laying of asphalt, a member of Constructionline and accredited to CHAS. A full list of Jones Bros’ accreditations can be seen here.
The group is committed to the partnering ethos and the principles of best value. Policies on the environment, equality, health & safety, quality and sustainability are all available for download on the group’s website. As part of the recent expansion, particularly into wind farms, Jones Bros has taken part in supply chain recruitment events, such as Meet the Buyer, where new suppliers and sub-contractors are encouraged to make contact with the group. Jones Bros also holds its own careers events.
Key Jones Bros procurement contacts include:
Managing director – John Dielhof
Tel: 01824-703661
Contracts director – Geraint Thomas
Tel: 01824-703661