Suttons & Sons acquisition today of Han Chi Logistics Co in China is a sign of the times for the Widnes-based firm. It makes far more money outside of the UK than it does in it.
To put it in simpler terms – Sutton & Sons (St Helens), the ‘British’ bit of the business had a turnover of £63.4m in the year-ending 30 April 2012 and posted a pre-tax profit of £1.4m. Suttons International had a turnover of £85m and posted a pre-tax profit of £5.4m in the same period.
It doesn’t take a rocket scientist to figure out that parent company Thomas Cradley Holdings makes the majority of its money overseas.
Breaking it down even further £29.8m of that £85m turnover came from operations in the Far East – a much larger stake that Suttons interests in the Middle East, the US and continental Europe.
China’s economy grew by 7.8% in the third quarter. A figure the UK can only dream of, and probably not sustain or support.
Information about Han Chi Logistics Co is slightly more scant…
John Sutton, Suttons Group CEO, said of today’s move: “The acquisition is an important development for the business and forms part of our growth strategy in China.”
And why would you not?