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It has a new three year plan and a clear view of investment needed which has given a clear message of confidence to both employees and customers. "Part of it is a re-affirmation of what we are doing in the UK," says chief executive Andrew Palmer. He warns that there are milestones along the way that have to be reached - but predicts that the company will once again be a potent force  in the market. The firm is "very satisfied with progress" to date.

But in its financial report for the year ended April 30 2006, its says cost pressures and the ability to recover costs from customers remain a major threat to maintaining progress and achieving and sustaining acceptable returns on investment. The road tanker business has shown a "dramatic improvement in what is an extremely mature market", although within that gas and petroleum suffered "mixed results". Suttons Distribution had a difficult year. But the rebranding of the group-owned site at St Helens to Linkway Business Park will "generate substantial long-term benefits".

Suttons which now operates as a consolidated group rather than three separate divisions. The three parts are road tankers, dry freight distribution and international, the ISO tank  container business which will be the main driver for growth, notably in China where the group has 25 employees and is the first logistics company to achieve full subsidiary status. Around £1m has been invested in financial and operational IT systems, resolving "a looming system crisis". Cash flow has improved, through spending less, collecting money better and operating more efficiently. The firm was going to buy 65 new trucks but was able to reduce that to 56 vehicles through efficiency gains.

Three directors left early in the year and gearing has been reduced from 39% to 29%. The average number of number of employees in UK haulage rose by 33 to 438. Turnover in the year ended April 30 2006 rose by 7.5% to £82.9m. Loss was turned to profit, with a turnaround figure of £2.21m both the operating and pre-tax profit levels. The pre-tax profit was £1.07m, against a loss of £1.14m the year before. The holding company is Thomas Cradley Holdings, which includes Cradley Leasing and Project Properties. It reports the same turnover figure as Suttons Transport Group and a pre-tax profit of £2.10m, against a small loss in 2004/5.

The company has returned to the first principles of Alf Sutton, who started the company in 1954 and grew by providing services to a small number of customers. The focus is on safety, engineering and logistics "solutions, not transactions", chief executive Andrew Palmer tells Motor Transport. Suttons aims to grow from £83m turnover in 2006 to £105m in 2009 international is predicted to grow from £46m to £64m, says chief executive Andrew Palmer. "We are the beginning of a journey, rather than the destination," Palmer says.