Bunzl on track and feeling flush

Bunzl, the international distribution group, said it had been boosted by recent acquisitions and was trading in line with expectations.

In a trading update on the last six months, the firm said it had seen revenue grow by around 7% due to underlying revenue growth of about 4%, as well as the impact of acquisitions and the sale of its UK vending business.

It's buying and selling spree also brought a slight improvement in operating margin, the company said.

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Bunzl also announced it was back on the acquisition trail with the purchase of of Service Paper Company in the United States.

Based near Seattle, Service Paper is principally engaged in the distribution of disposable supplies to the grocery, foodservice, food processor and industrial packaging sectors throughout the Pacific Northwest.

It generated revenues of $61m in 2011 and had gross assets of around $18m.

Including the acquisition of Service Paper announced today, Bunzl has bought five companies in the last year with annualised revenue of approximately £130m.

"The current environment for acquisitions remains positive with a promising pipeline of opportunities," the company said.