Millers looks ahead to strong sales and profit growth
MILLERS Oils, the specialist oil and lubricants manufacturer, is looking at strong sales and profit growth in the year ahead after shifting its focus to higher margin products.
Last year, the firm took a hit after enduring a “volatile” and “competitive” market and for the year ended March 31, 2013, Millers said turnover decreased slightly to £24.6m from £26.7m during the previous year and it saw a shrinking pre-tax profit of £195,213 from £216,266. Gross profit margin rose to 27% from 23%.
The Brighouse headquartered company said it has focused on changing its “sales mix”.
The company said: “The business has significantly changed the sales mix in this financial year, reducing turnover from the less profitable fuel oils sales and focusing on the higher margin specialised lubricating oils. For lubricating oils, the existing customer base has for the most part been maintained and new customers continue to be won.
“Continued sales growth and profit growth is expected in the current year, coupled with continued capital investment.”
Millers was awarded a Queen’s Award for Enterprise in 2012 in recognition of significant and continued growth in export sales. In the same year, it celebrated 125 years in business and opened its £500,000 R&D laboratory to help develop new products and technology.
The firm said the price of oil remains “volatile” and therefore world oil prices are continually monitored and price changes are made when deemed necessary.
It said: “The company operates in a competitive market where price competition is a major factor in the customer’s choice of supplier.”
Millers said the difficult economic trading conditions could cause more customers to leave due to price competition.
However, the directors said they place greater emphasis on the pence per litre of products sold and by focusing on this, the gross contribution to profit will grow.
Millers Oils was founded in 1887 and has depots in Aberdeen, Glasgow, Leicester and Bridgwater. It employs around 120 people.
