J.R. Rix & Sons reports increase in profits after sale surge at leisure homes business

Victory Leisure Homes, the East Yorkshire-based home and lodge manufacturer, has spearheaded a solid financial performance for the Rix Group of companies in the year to December 2016.

Pre-tax profits at the Gilberdyke business surged from £256k in 2015 to £1.5m last year, helping to drive a 16% rise in group profit, from £5.1m to £5.9m.

Strong performances from the group’s property business and Rix Petroleum – the largest company in the group – also supported the financial results.

Rory Clarke, managing director of J.R. Rix & Sons, said: “Victory Leisure Homes has had a fantastic year, helped by an increase in the number of holiday makers who decided to stay in the UK.

“Uncertainty abroad, combined with the fall in the value of the pound following the Brexit vote, have had a significant influence on the holiday market. The Victory brand continues to become established, which in turn has created increased market share.”

Group revenue fell slightly, from £359m to £348m, reflecting a fall in turnover for both the inland and marine fuel businesses.

Whilst Maritime Bunkering’s turnover dropped from £30.5m to £25.5m, profits increased from £718k to £1m, largely as a result of cost saving.

Rix Petroleum’s turnover fell from £284m in 2015 to £272m last year, with profits reducing from £2.7m to £2.1m.

Mr Clarke said: “Rix Petroleum is the largest company in the J.R. Rix & Sons Group. Whilst 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.”

Mr Clarke added: “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.”

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