The Courier & Advertiser (Fife Edition)
Demand strong for Rix Shipping warehousing
Industry: Long-running business at Montrose Port has spent millions expanding its warehousing capabilities in the Angus town
A major investment in warehousing in Montrose is paying dividends for the parent company of Rix Shipping (Scotland).
Newly published accounts show that Hull-based parent group J R Rix & Sons saw a drop in turnover from £359 million to £348m for the year ending December 31 2016.
Profits in the group, whose activities include car sales to caravans, selling petroleum, shipping and marine bunkering, came in at £5.9m, a 15% increase from the £5.1m recorded in 2015.
Separate filings for Rix Shipping, which is based at Montrose Port, shows revenues last year of £1.7m with a pretax profit of £261,400, a decrease from £442,400 in 2015.
Rix Shipping now has 280,000 sq ft of warehousing in Montrose, where it has operated for more than 50 years.
In 2015, £1m was spent on a new warehouse and office development which replaced an existing building on Meridian Street.
Since then another seven-figure development on a site in the town’s Barrack Road has created further warehouse capacity.
The strong demand for warehousing was highlighted by J R Rix & Sons director David Evans, who noted that revenues from the company’s shipping operations rose from £6.6m in 2015 to £7.2m last year.
He said: “Shipping is responsible for the management of the group’s shipping vessels together with stevedoring operations in both Hull and Montrose.
“The principle activities continue to be the management of the windfarm work boats, tanker and barge fleets along with the operation of the shipping terminals in Hull and Montrose.
“In 2016 there was an increase in both turnover and profitability, although the windfarm work boat market remained intermittent.
“In Montrose the company continues to redevelop its facilities and demand for warehousing remains strong.”
The marine bunkering side of the business saw turnover reduce from £30.5m in 2015 to £25.4m last year after reduced demand in the first quarter.
The company’s sale of petroleum in 2016 was similar to the previous year and in line with expectations at £272m.
The side of the business which manufactures static caravans and lodges under the Victory brand saw revenue increase from £15.5m to £19.5m.