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
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Christmas at Chatsworth: review of The Cavendish Hotel at Baslow
MoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
By Dr Matthew Partridge Published
-
Tycoon Truong My Lan on death row over world’s biggest bank fraud
Property tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
By Jane Lewis Published