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Suttons to focus on international transport

16 November 2007

Suttons Transport Group is investing heavily in its international business as it is the group's growth area, says managing director Andrew Palmer. "The potential is staggering," Palmer says, adding that while the traditional UK tanker business is still "very important" Suttons has a "clear view on which businesses we're going to develop".

Suttons International operates in Europe, the USA, India and Asia, and is currently in the process of applying to operate its own fleet in China after  10 years of business there, rather than outsourcing as it does currently. Managing director of Suttons International, John Sutton, says it is hoped the first trucks will be bought early next year. He says it is "natural for the group to expand [the international business] as it has been the better business over the past six or seven years".

The group has now essentially exited the UK distribution and general haulage sector after experiencing another "difficult" year. "There's a big question mark over the future of general haulage," says Palmer, adding that Suttons has scaled down to around ten vehicles for this part of the business, from 50 three years ago. But the rebranding of the original haulage site as Linkway Distribution Park - whose tenants include KN Drinks Logistics - means the warehousing business has "a strong future".

The firm has considered acquisitions in the tanker division, and Palmer concedes that Suttons has been "slow off the mark" in a couple of cases.  He adds that while the group feels there are currently no opportunities in the UK, Suttons is "actively considering" possibilities internationally.

Pre-tax profit for the group hit £1.3m in the year to April 2007, from £1.1m in 2006. The international arm of the business accounted for the group's 1.6% growth in turnover, to £84.2m. Turnover for the international business was worth more than half the total at £45.2m, while the UK tanker business remained static at £34m. Palmer forecasts group turnover to hit up to £93m in the next financial year, with a target of £120m based on organic growth by 2010.


Sarah Dennis
Email at news@roadtransport.com
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