Johnston Oil sees profits surge to £1m

PROFITS at Bathgate-based fuel distributor Johnston Oils jumped from £11,000 to £1 million in 2010 on the back of a 24 per cent increase in revenue.

Johnston Oils did not return calls yesterday to explain the rise in pre-tax profits, but the firm is likely to have benefited from rising oil prices last year and the two harsh winters on the trot.

Staff costs rose from 2.3m in 2009 to 2.5m in 2010, despite the number of staff falling from 89 to 80, according to accounts filed at Companies House.

Writing in the accounts, director James Johnston said: "The directors are very pleased with the results for the year, which have been achieved during a very volatile period in the economy.

"Despite rising oil market prices, all volume and financial objectives have been achieved."

Johnston Oils, which was founded in 1965, embarked on a buying spree in recent years, snapping up a number of companies throughout Scotland to give it a network of depots covering Aberdeen, Arran, Bathgate, Dundee, Falkirk and St Boswells.

Its most recent acquisition came in 2005, when it took over Anderson Oils in Dundee.

In 2009, the company turned its attention to businesses south of the Border, buying Gloucester-based ACP Fuels for an undisclosed six-figure sum.

Its clients range from domestic heating oil customers through to large companies. The firm also supplies liquified petroleum gas, which is used as an alternative to oil in many rural central-heating systems.