WASHINGTON: Widnes international logistics and supply chain specialist Suttons Group is reporting a £29.8m rise in annual revenues to £176.2m. However, the company also said operating profit in the 12 months to April 30 fell from a record £10.4m in the previous year to £8.3m.
It added that £1.5m of the shortfall was due to amortisation of goodwill on two major acquisitions but also admitted there had been “challenging” economic conditions in some key international markets.
The acquisitions were Imperial Tankers in the UK and IS Logistics in Singapore. In the case of the Imperial Tankers acquisition, it strengthened the bulk chemicals transport capability and, together with a new contract which started shortly afterwards, almost doubled the size of the UK tankers’ operations.
The acquisition of IS Logistics was important in terms of further broadening the international logistics capabilities of the group and adding downstream services such as transport, warehousing and drumming. The business is now a key hub for Suttons’ Asian business, and will enable the group to offer “fully integrated propositions” to both existing and new customers.
In addition to the acquisitions Suttons continued to invest in the development of the business with capital expenditure totalling £9.7m. This included new operating and planning systems in the tankers and international divisions together with a major asset replacement programme of ISO tanks, trucks and road barrels.
This year will also be remembered at Suttons for the sad news of the passing of Michael Sutton, chairman and son of the group’s founder, Alf Sutton.
Mr Sutton died in May following a short illness. Non-executive director Terry Stockley has taken the role of acting chairman until his successor is appointed. Suttons Group chief executive, John Sutton, said: “It has been a year of mixed fortunes for the group.“We have seen successes and progress in some areas and challenges in others.
“We are pleased that we have been able to complete some significant investments across the business which will enable us to continue to provide the highest service standards in the markets in which we operate and expand the range of those services that we can provide to our customers.”
