Acquisitions boost Suttons Group revenue to £176m

INTERNATIONAL logistics and supply chain specialist Suttons Group, based in Widnes Cheshire, has reported a £29.8m increase in revenue from continuing operations to £176.2m for the year ending April 30 2015.

During the year Suttons made two significant acquisitions, Imperial Tankers in the UK and I S Logistics in Singapore.

Both acquisitions were of strategic importance. Although the growth was predominantly the result of acquisitions which increased revenue by £26.9m, underlying like-for-like growth of 2% in turnover was achieved.

Headline operating profit from continuing operations fell from a record £10.4m in the previous year to £8.3m.

However, £1.5m of the shortfall was due to amortisation of goodwill on the acquisitions, leaving an underlying fall of 5%, reflecting challenging economic conditions in some key international markets.

The Imperial Tankers acquisition 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 I S Logistics broadened the international logistics capabilities of the Group and added downstream services such as transport, warehousing and drumming.

Based in Singapore the business is a key hub for Suttons’ Asian operation, and will enable the Group to offer fully integrated propositions to both existing and new customers.

Meanwhile, Suttons continued to invest in the development of the business with capital expenditure totalling £9.7m, including 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.

2014/15 will be remembered at Suttons for the sad news of the passing of Michael Sutton, chairman and son of the Group’s founder Alf Sutton.

Michael died in May following a short illness. Non-executive director Terry Stockley has taken the role of acting chairman until Michael’s successor is appointed.

Suttons Group chief executive John Sutton said: “It’s 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.

“For 2015/16 we expect substantial challenges for both our UK and international business, but thanks to the investments we have made and the teams we now have in place, we feel we are well placed to meet those challenges and continue to support our customers with the dedication and commitment they expect from us.”

Close