Fuchs Lubricants (UK) plc has reported a dip in profits and sales volumes for 2024, as inflation and a subdued market impacted performance, according to latest results.
The Hanley-based company, which manufactures and distributes industrial and automotive lubricants and fluids, saw profit before tax fall to £13.4 million, down from £14.8 million the previous year. Net assets also slipped to £71.6 million from £73.3 million in 2023.
In its recently published strategic report, the company said: “Volumes sold in 2024 were behind 2023. The lubricants market remains highly competitive while market demand remains suppressed. This has led to slightly lower sales revenues and margins over 2023.”
Rising personnel expenses and further investment in digitalisation contributed to an increase in overheads. Despite the challenges, the directors said the company ‘operates today, and into the foreseeable future, on a going concern basis’.
Return on capital employed – the company’s key financial performance indicator – dropped to 17.5 per cent from 19.7 per cent, though the business continues to generate strong shareholder returns. A dividend of £10.5 million was paid in 2024, up from £6 million in 2023, with a further £9.2 million declared post year-end.
Fuchs, which is wholly owned by German group Fuchs SE, continues to invest in sustainability, with a particular focus on reducing environmental impact. One key initiative has been replacing plastic packaging with recyclable alternatives, which has ‘saved over 1,800 tonnes of plastic since commencement’.
Further energy efficiency measures are being rolled out, including a steam trap survey expected to save 100,000 kWh per year, and plans to replace LPG forklift trucks with electric alternatives.
The company is also ‘constantly reviewing its operating activities to identify and mitigate the risk to the company associated with climate change’ and recognises the growing demand for energy-efficient products.
The company paid £2.46 million in research and development costs in 2024, up from £2.18 million the year before, as it continues to improve existing products and develop new ones tailored to customer needs.
Employee engagement remains a focus, with regular ‘town hall’ meetings and updates from the managing director, and a strong emphasis on staff retention and development.
The report stated: “Employee retention is strong with many long serving employees. The company’s success can be attributed to excellent products and good service with a focus on working with customers to clearly identify their needs and requirements.”
