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.
Subscribe to 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
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published