Bunzl on the prowl for more performance-boosting acquisitions

International distribution and outsourcing group Bunzl said trading in 2012 has been strong, with the group seeing solid top line growth and an improvement in the group operating margin.

Revenue in the first quarter of 2012 is up 7%, boosted by recent acquisitions. Organic revenue growth clocked in at 4%.

In North America underlying revenue growth continues to be strong, at a similar level to the second half of 2011, and the operating margin is stable, the group revealed.

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In Continental Europe, underlying revenue growth is at the same level as in the second half of 2011, but the economic environment in the region continues to be weak. The acquisitions completed last year have led to strong revenue growth and an increase in operating margin.

In the UK & Ireland, once the impact of the disposed of vending business is stripped out, revenue and profit both improved, thanks to the acquisitions made last year.

As for the Rest of the World, Bunzl said the combination of strong underlying revenue growth and the impact from acquisitions has led to significant increases in revenue and profit.

With so much of the good news coming from acquisitions, shareholders might well be pleased to know that the company is in discussion with a number of potential acquisition targets.

"The board is confident that Bunzl will continue to develop well due to underlying growth and the impact from acquisitions," the statement concluded.

JH