Oil prices fuel record financial performance for J.R. Rix & Sons Ltd

Recovery of the oil price and continued demand for staycations has fuelled a record year for Hull family company J.R. Rix & Sons Ltd.

Oil price recovery helps fuel a record year for the Hull family company

A 38.7% increase in sales for Rix Petroleum alongside an 83% growth in turnover for Victory Leisure Homes, the Group’s holiday home and lodge maker, saw Group turnover reach £756.1m – the highest in the company’s history.

Rory Clarke, Group Managing Director said that Rix Petroleum’s performance – which saw sales reach £535.1m – resulted principally from the recovery of crude oil prices which underpin the retail cost of petroleum products.

Crude oil saw an 88% increase in price during 2022 as the global supply chain realigned in response to the sanctions on Russia, Mr Clarke said.

Group profit before tax reached £23.8m in 2022, representing significant progress on the previous year’s result of £11.5m.

A record year

Mr Clarke said: “2022 has been a record year for J.R. & Sons Ltd, with all companies within the Group contributing to an increase in profitability.

“Victory Leisure Homes, in particular, experienced significant revenue growth thanks to an extremely buoyant UK holiday market, ongoing product innovation, and a strong management team.

“This saw the business almost double sales figures for the second year in succession, as well as achieve record profits.

“Rix Petroleum was helped by an increase in the price of crude oil, which stabilised during 2022 as market turmoil created by the war in Ukraine began to subside.

“Together, these results played a significant role in helping the Group achieve its best financial performance to date.”

Growth in renewables

Elsewhere, businesses in the Group also performed ahead of expectations.

Maritime Bunkering, which supplies marine fuels to shipping vessels, saw a 73% increase in revenue, but, as with Rix Petroleum, this is largely attributable to the higher oil price.

Rix Renewables, which provides managed services for the offshore and onshore wind farm industry, made significant progression across the year, growing revenue 80% to £1.9m.

But Jordan Cars, which operates an FCA dealership selling new Fiat, Jeep, and Alfa Romeo cars, as well as used cars, saw a dip in turnover, as well as reporting a small loss. Performance was hampered by reduced customer demand due to inflation and concerns about interest rates, and challenges in the supply chain of new vehicle and parts.

Mr Clarke added that the Group’s strategy going forward continues to be one of reinvesting profit into opportunities it identifies through new business development, along with targeted acquisitions.

“As a board, we have always taken decisions for the long term,” he said.