P RESULTS
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Suttons Group profit hit by exchange rate
BULK TANKER specialist Suttons Group says adverse currency exchange movements contributed to a drop in prof tt for the year to April 2010.
Pre-tax profit at Thomas Cradley Holdings — which trades as Suttons Group — dipped 9.9% to £5.7m, compared with £6.3m in the previous 12-month period. However, turnover rose 4.8% to £105.7m, up from £100.8m in 2009.
The Widnes, Cheshirebased firm says the financial year saw a £201000 trading loss on foreign exchange compared with a trading gain of £898,000 in 2009.
Excluding the impact of these movements, group profit before taxation increased 8.8% on 2009. Suttons believes some of its sites — particularly in the UK — experienced the adverse impact of "very difficult trading conditions" as the recession continued into early 2010.
A report from the directors says: "While the group continued to implement measures to protect the business, UK road tanker operations experienced upward cost pressures and reduced volumes, significantly reducing prof t[ability and margins. Warehousing operations were adversely affected by reduced customer stockholdings and fierce competition arising from an over-supply of available space in north-west England."
Suttons says its international division "significantly improved its performance" during the financial year and purchased 800 new tank containers.
This year the firm has won new contracts with BOC, Grace Construction and Grosvenor Chemicals.
However, the company believes the midterm outlook "remains uncertain" and the year to April 2011 will be "challenging"