Staycations fuel growth for £525m Hull based family-owned business

A growing demand for holiday homes and lodges combined with the high oil price saw East Yorkshire family-owned business J.R. Rix & Sons Ltd increase turnover by 42 per cent last year.

The company, which is based in Two Humber Quays, Hull city centre, saw Group revenue rise by £129m in the 12 months to December 31, 2021, compared to the same period the year before, to reach £525.4m.

Group profit, before tax, also rose to £11.8m, up from £6.3m in 2020. Victory Leisure Homes, the Rix Group’s holiday home and lodge manufacturing business, posted a growth in turnover of 136 per cent, rising from £22.3m in 2020 to £52.7m last year.

The business’s performance was “hampered” by the Covid-19 pandemic in 2020, which saw holiday parks shut up shop during lockdown, leading to an 11-week factory closure in the summer.

But with UK leisure and tourism now back in “full swing”, Victory Leisure Homes ramped up production last year with the opening of a second factory on the former Kingstown Furniture site in Hull, leading to the impressive hike in revenue and market share.

Pre-tax profit, which rose 44 per cent from £447,205 to £799,789 last year, also reflected the impact from the significant investment in launching the company’s new manufacturing base, as well as the “spiralling” cost of materials.

Fuel supplier, Rix Petroleum, the largest business in the Group, also reported a significant increase in revenue, up from £304.4m in 2020 to £385.8m last year as oil prices returned to more normal levels from a very low base created by Covid in the previous year.

Group managing director Rory Clarke (pictured above) commented: “Throughout 2021, all our businesses performed well and have contributed to an increase in profitability with a total of £11.9m achieved, which was a good result for the Group.

“This was achieved despite some operations being affected by the ongoing turbulence of almost unprecedented commodity prices and the Covid-19 pandemic. The Group’s strategy continues to be one of reinvesting into the opportunities it identifies through new business development, along with targeted acquisitions.”

By Matthew Neville – Correspondent, Bdaily

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