FUCHS Lubricants (UK) has seen an increase of more than 110 per cent in profits despite volume reductions during the last financial year, according to latest results.
The company, part of the Germany-based FUCHS Group, has reported pre-tax profits of £14.8 million for the year ended 31 December 2023, up from £6.9 million in the previous year.
During the same period, turnover rose by just over six per cent to £181 million from £170 million.
Based on New Century Street, in Hanley, Stoke-on-Trent, the firm manufactures and distributes industrial and automotive lubricants and fluids and employs 328 people.
A recently-released financial report signed on behalf of the Board by Director Richard Halhead states: “Volumes sold in 2023 were behind 2022.
“Significant cost increases in 2022 on the back of the war in Ukraine and subsequent shortages led to several selling price increases. In the early part of 2023, we saw some cost reductions as availability improved, with material prices remaining stable for the rest of 2023.
“Despite volume reductions, cost reductions and stable selling prices have increased margins over 2022.
“Overhead cost increases, particularly labour and energy costs have impacted our cost base. Despite these issues profits have exceeded 2022 levels.”
The wider FUCHS Group was founded in 1931 as a family business and is now the world’s largest independent supplier of innovative lubrication solutions.
It employs 6,000 people in over 50 countries.
FUCHS UK has made large investments into its production plant in Stoke-on-Trent in recent years including a £5 million raw materials warehouse opened in 2021 and a state-of-the-art head office in 2017.
The company’s history links back to Walker Brothers Oil, which was founded in Cobridge, Stoke-on-Trent, in 1874 and later became Century Oils.
