Moray company Gleaner Oils has reported a “good year of progress” in a volatile market for fuel distributors.
The Elgin-based firm said yesterday it achieved a “marked uplift” in sales volume, market share and profitability during the year to June 30, 2016.
But pre-tax profits slid by 28%, compared with a year earlier, to £309,988 on turnover that was down nearly 9% at £105million. Employee numbers held steady at 190.
Managing director David Todd highlighted a 20% rise in gross profits to more than £8.5million, and said turnover was not a good barometer of the company’s trading performance because of its link to fluctuating oil prices.
He added: “It has been a good year of progress for the business in a volatile oil and gas market characterised by falling prices and great uncertainty.
“We have focused on investing for the future, and are pleased to see a dividend from that strategy, with an uplift in gross profit, a strong balance sheet and an increase in sales, including winning new clients for the first time in the central belt and Lothians.
“We operate in a high volume, high cost, low margin market, and our turnover is linked to the price of oil.
“What matters is that our business is as efficient as possible, hence we continue to target efficiency, margins and volume growth.
“Maintaining a continuing programme of investment and performance improvement will ensure a long-term, sustainable future.”
Gleaner owns nine petrol stations and 11 depots across Scotland, while also supplying fuel to another 60 filling stations – many of them in remote parts of the north.
In addition, the company is an authorised Shell lubricants distributor and product supplier to around 16,000 regular business customers.
Its latest accounts were impacted by a major investment programme launched during 2014, since when £3.5million has been spent on upgrades to the company’s tanker fleet and vehicles, as well as forecourt and depot improvements, new IT systems and staff training and development.
A new finance director, Iain Thain, was also appointed during the 2015/16 trading year, joining the company from Highlands and Islands Airports.
Gleaner is now wholly-owned by Jane and Stephen Scott, who took control of the business by acquiring 50% of it from Mrs Scott’s uncle, Brian Young, in a multimillion-pound deal in 2014.
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