Rix Petroleum profits remains stable despite £76m fall in revenue

Hull-based Rix Petroleum, the fuel supplier and largest firm in the J.R. Rix & Sons Group, kept profits stable despite seeing a significant drop in turnover for 2015.

The company reported revenues of £284.5m in the 12 months to December 31st 2015, a decrease of £76m compared to the same period of the year before.

This dip in turnover means that J.R. Rix & Sons’ group turnover fell from £453m in 2014 to £359m last year, although net profit remained stable at £4.3m.

Rory Clarke, managing director of Rix Petroleum and J.R. Rix & Sons board director, said: “In many industries turnover is an indication of the volume of products sold and a company’s market share, but that is not the case with us.

“The fall in revenue simply reflects a dramatic fall in our raw material costs, which we pass on to our customers by selling product at a lower price.

“Therefore, the global drop in oil price is something that benefits both us and our customers by reducing our operating costs and demand on working capital. Rix Petroleum increased its volume of sales and market share, and kept profits stable, which is a positive performance.”

Elsewhere, the group’s performance was in line with or better than 2014.

Victory Leisure Homes, the caravan and lodge manufacturer, reported an increase in turnover, and car retailer Jordans & Co (Hull) Ltd also saw growth in sales.

Maritime Bunkering, which supplies marine fuels to vessels on the Humber Estuary, saw a rise in profits despite seeing a fall in revenue in line with the depreciating oil price.

Rix Shipping was the only company in the group to see a downturn in both turnover and profit. The company, which manages the group’s vessels and stevedoring operations in Hull and Montrose, reported a small drop in sales as the crew transfer vessel season was slow to get underway.

Mr Clarke added: “Overall 2015 was a healthy year for the company and group bottom line remained steady.

“Whilst the performance of the shipping division was disappointing all other areas of the business put in a similar or improved performance compared to the previous year, which is a very positive result.”