Hull based Rix Group has seen a rise in profits following a strong year, driven by the companies heating oil distribution business.
The multi-functioning organisation has seen profits rise to £5.9m due to its strong performance across Rix Petroleum, the group’s heating oil distribution service and Victory Leisure, its leisure home manufacturing division.
Rory Clarke, Managing Director of JR Rix & Sons comments, “Rix Petroleum is the largest company in the JR Rix & Sons Group,” continued Clarke. “While oil prices increased during 2016, they remained below the 2015 average. Following the Brexit vote, the value of sterling weakened against the dollar in the second half of the year, and oil is traded in US dollars.
“Despite selling a similar volume of fuel and maintaining market share, company turnover reduced, primarily as a result of selling a greater volume of low-duty product last year and a lower volume of high-duty product. As fuel duty makes up a significant proportion of our turnover, this shift of emphasis had a corresponding effect.
“What is pleasing is that all parts of the company managed to return a similar or improved profit, making it a solid, all-round performance.”
Rix Petroleum’s turnover fell from £284m in 2015 to £272m last year, with profits falling from £2.7m to £2.1m. However, market share remained the same, with the company selling approximately 400m litres of petroleum products in both years.