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%.

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.

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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.

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cj