One of Hull’s oldest family businesses reported a strong rise in turnover last year, boosted by rising oil prices and a string of acquisitions.
J.R. Rix & Sons, which can be traced as far back as 1873, saw group revenue hit almost £500m in 2018, as pre-tax profits rocketed by nearly £2m.
Rix’s group of companies spans a variety of sectors, from petroleum and holiday home manufacturing to transport vessels for offshore wind workers.
The group enjoyed strong success in its biggest company – Rix Petroleum – as oil prices peaking at key trading times contributed to 70 per cent of J.R. Rix & Son’s overall sales growth.
Rix Petroleum has also made two key acquisitions in recent years, and is reaping the rewards of those deals.
Rory Clarke, managing director at J.R. Rix & Sons Ltd, said the company had reported a strong trading performance.
He said: “In a commodity-based business like Rix Petroleum, turnover is affected by a number of factors, including the cost of raw materials. When this goes up, the price of product increases in the marketplace, inflating the value of our sales.
“Despite seeing a significant increase in turnover, therefore, the volume of product we sold has only gone up by a relatively small amount, which can be accounted for by some extra sales in the cold snap earlier this year, but mainly due to the acquisitions of Stones Fuel Oils and Wynnstay Fuels.”
Sales at Rix Petroleum soared from £304m to £366m.
As well as the rising oil price, the result reflects the impact of two acquisitions – North Yorkshire-based Stones Fuel Oils at the end of 2017, and Wynnstay Fuels Ltd, which the company bought in mid-2018.
Group pre-tax profits rose by a third at Rix last year, from £5.8m to £7.7m, as other businesses in the group also performed well.
Maritime Bunkering – J.R. Rix and Sons’ marine fuel business – saw a 57 per cent rise in revenue to £60m, due to the fluctuating oil price, the fall of Sterling against the dollar, and growth in volume sold.
Rix Shipping has seen its crew transfer service, supporting offshore wind farms, boom, as it contributed heavily to a nine per cent turnover rise last year.
Elsewhere, Jordans Cars – Rix’s motor division – increased its turnover to £30m due to increased demand in fleet and commercial sales.
Holiday home and lodge manufacturer, Victory Leisure Homes, reported a dip in sales however, from £27m to £25m.
Mr Clarke said that overall, the board was happy with the Group’s performance.
“This has been a good year for J.R. Rix & Sons,” he said.
“Our fuel wholesale and distributions operations have reported a solid performance, as has our shipping business, and our motor division.
“Our caravan manufacturing operation has seen a slight fall in revenue as a reflection of the decline in retail confidence extending into the leisure home market, so taking that into consideration, the business performed in line with expectations.”
