Rix delivers record revenues after Russian invasion sent petrol prices rocketing

Continued demand for staycations and peak oil prices fuelled a record year for Hull family company JR Rix & Sons Ltd. Revenues increased 41 per cent across the business, with Russia’s invasion of Ukraine sending crude prices rocketing.

And while it was the driving force for the huge jump – with Rix Petroleum alone surpassing last year’s group sales – Victory Leisure Homes, Rix’s holiday home and lodge maker, delivered 83 per cent growth in 2022, with turnover rising from £52.6 million in 2021 to £96.2 million last year. Pre-tax profits at the manufacturer also took a large leap forward thanks to buoyant demand, up from £800,000 in 2021 to £4.7 million.

The performance, alongside a 38.7 per cent increase in sales for Rix Petroleum, saw group turnover reach £756.1 million, up from £525.4 million, the company said, releasing the figures ahead of the formal filing of its results.

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Rory Clarke, group managing director said that Rix Petroleum’s performance – which saw sales reach £535.1 million (from £385 million) – was principally from the recovery of crude oil prices which underpin the retail cost of products. Crude oil saw an 88 per cent increase in price during the year as the global supply chain realigned in response to the sanctions on Putin’s regime.

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

Mr Clarke said: “2022 has been a record year for JR Rix & 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.

Rory Clarke, managing director of JR Rix & Sons Ltd.
Rory Clarke, managing director of JR Rix & Sons Ltd.

“Rix Petroleum was helped by an increase in the price of crude oil, which stabilised 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.”

Elsewhere, Rix businesses also performed ahead of expectations, he said. Maritime Bunkering, which supplies marine fuels to shipping vessels, saw a 73 per cent increase in revenue, up from £55.6 million to £96.1 million, but as with Rix Petroleum, this was 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 per cent to £1.9 million. But Jordan Cars, the dealership selling new Fiat, Jeep, and Alfa Romeo cars, as well as used cars, saw a dip in turnover, down from £18.8 million to £15.3 million, 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 said.

He 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.

Original artice – https://business-live.co.uk/all-about/yorkshire-humber

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