Directors at a long-established Northumberland chemicals firm say their business is poised for significant expansion after reporting a dramatic doubling of pre-tax profits.
Financial Performance Soars
Kilfrost, based in Haltwhistle, has released accounts for the year ended March 2025 showing impressive financial health. Turnover increased substantially from £15.4 million to £21.1 million, while operating profit jumped from £3.75 million to £6.14 million.
The most striking figure was the pre-tax profit, which rocketed from £2.99 million to £6.2 million. Overall profit for the year reached £4.06 million, up from £2.35 million the previous year. Shareholder funds also saw healthy growth, climbing from £7.2 million to £10.1 million.
Expanding Beyond Aviation
While Kilfrost began in 1933 specialising in aircraft de-icing fluids (ADF), the company has significantly diversified its operations. Its legacy in ADF remains the foundation of the business, but it now supplies products to numerous sectors.
The firm's Speciality Fluids Division (SFD) continues to make market inroads, with Scandinavia emerging as a core market. The company acknowledges that further sales and marketing work is needed for its US operations.
Kilfrost's products now serve ground transportation, rail sectors, food and drink manufacturing, brewing, and renewable energy systems. The company's low-viscosity products have found applications in diverse areas from data centres and ice rinks to ground source heat pump systems.
Weathering Market Challenges
Company directors noted that the past 12 months featured "an average winter," resulting in lower-than-average use of their traditional aircraft de-icing products. However, consistent pricing of their major raw material (MPG) and contractual pricing mechanisms ensured profitability was maintained.
In their report, directors stated: "Kilfrost had a sound trading year and is in a strong position for the next phase of growth." The company, now in its 93rd year, continues to lead in product development with patents currently being applied for.
Geographical analysis shows the UK market accounted for £17.7 million of turnover, up from £11.24 million, while European sales slightly decreased from £3.59 million to £3.09 million. Sales in the rest of the world brought in £370,000, down from £538,000.
The 30-employee firm has been involved in diverse projects including de-icing Newcastle United's football pitch, protecting trains during winter conditions, aiding Arctic convoys by keeping ships safe, and supplying products for Antarctic surveys.
Looking ahead, Kilfrost aims to mitigate the seasonal variability of its ADF products through continued development and growth in its Speciality Fluids Division. The company operates globally, serving customers directly or through licence agreements in more than 50 countries, with the respected Kilfrost brand viewed as a leader in its field.
