Bunzl boosted by acquisition spree
Distribution and outsourcing firm Bunzl said this year's string of acquisitions will help it report annual revenue growth of over 6%.
Distribution and outsourcing firm Bunzl said this year's string of acquisitions will help it report annual revenue growth of over 6%.
The group, whose products include supermarket bags and hospital gowns, said overall trading for the year ending 31 December 2011 has been consistent with expectations given at its interim statement in October.
At constant exchange rates group revenue growth for the year is expected to be over 6% due to underlying revenue growth of about 3.5% and the positive impact from acquisitions.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Bunzl said there has also been an improvement in the group's operating margin.
The group, which spent £185m on ten acquisitions this year, said company takeovers remain "an important part of the group's growth strategy."
Bunzl said overall the operating profit margin of the acquired companies is higher than the group average.
"They are integrating well and the current environment for acquisitions remains positive with a promising pipeline," the group said.
Bunzl said its strong cash flow and balance sheet should continue to enable it take further consolidation opportunities.
--
cj
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
What MoneyWeek has learnt in the last 25 yearsFinancial markets have suffered two huge bear markets and a pandemic since MoneyWeek launched. Alex Rankine reviews key trends and lessons from a turbulent time
-
Review: Relais & Châteaux – a world of wine and art in the Western CapeTravel Relais & Châteaux, the association of independent luxury hotels, offers a refined experience in Cape Town and Stellenbosch, in South Africa
