The UK arm of lubricant giant Fuchs, which is based in Stoke-on-Trent, has reported increased revenue and profits for 2019.
Fuchs supplies a range of lubricants for UK manufacturers, including industrial lubricants like compressor oil. Despite reporting a poor second quarter due to COVID-19 restrictions and an overall slowdown in UK manufacturing in 2019, the company reports increased profitability, due in part to an element of stockpiling around the time of the UK’s exit from the European Union on January 31.
In a statement, the company said:
“We experienced an increase in customer orders around the time of Brexit as customers anticipated restricted availability and potential tariff impacts on costs. The combined effects of these two factors and along with continuing careful management of our cost base we have been able to increase profits from 2018 levels.”
Fuchs reported revenues increasing from £130.5 million in 2018 to £136.4m in 2019, with profits also increasing to £7.5 million from £6.1 million. This period, of course, predates the COVID-19 pandemic, and while the company highlights that it cannot yet estimate its effects on this year’s results, it says it has adequate funds to cope with similar or worse situations in future and is running on a going concern basis.
Unlike many other brands, Fuchs is fully focused on making and selling lubricants and related products, with its portfolio including over 10,000 products for industrial, automotive and metalworking use. Around 10% of its workforce is engaged in the research and development of new products.