Leisure home sales help drive profits at J.R. Rix & Sons

Rory Clarke, managing director of J.R. Rix & Sons Ltd.

Leisure home sales help drive profits at J.R. Rix & Sons

Leisure home and lodge manufacturer, Victory Leisure Homes, helped drive a solid financial performance for the Rix Group last year.

Pre-tax profits at the Gilberdyke home business surged from £256,000 in 2015 to £1.5m last year, helping to drive a 16% rise in [profits for the group, from £5.1m to £5.9m.

Strong performances from the group’s property business and Rix Petroleum – the largest company in the group – also underpinned the result.

Rory Clarke, managing director of J.R. Rix & Sons, said that Victory Leisure Homes had benefited from an increased demand in the domestic holiday market.

He 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 £718,000 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.

However, market share remained the same, with the company selling approximately 400m litres of petroleum products in both years.

Rory continued: “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.”

“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.”