Interim Management Statement

RNS Number : 5772U

Bunzl PLC

19 October 2010

 



19 October 2010

BUNZL INTERIM MANAGEMENT STATEMENT AND

ACQUISITION IN THE NETHERLANDS

Bunzl plc, the international distribution and outsourcing Group, today announces its interim management statement for the period since 30 June 2010.

Overall trading has been consistent with expectations at the time of the half year results announcement in August.  Group revenue for the third quarter is up 6% compared to the same period last year, while it has increased 3% year to date, due to underlying revenue growth and the positive impact from exchange and acquisitions.  Excluding the previously announced one-off positive impact from the sale of products related to H1N1 prevention last year, underlying revenue growth for the third quarter was 1%, the same level as the first half of 2010.

In relation to the third quarter:

·     In North America the strong underlying revenue growth was at a similar level to the first half, although margin pressure has continued.

·     Revenue in the UK & Ireland has remained below 2009 due to the persisting difficult economic conditions, however margins have improved.

·     In Continental Europe revenue and operating profit in 2009 were positively impacted by the sale of H1N1 prevention products.  After adjusting for this impact, both revenue and operating profit were ahead of the prior year, principally due to the impact of acquisitions.

·     In the Rest of the World the combination of strong underlying revenue growth and margin improvement has led to excellent profit growth compared to the same period last year.

Acquisitions remain a key component of Bunzl's growth strategy and today we are also pleased to announce the purchase of W. Van't Veer Verpakkingen B.V. from a privately owned company controlled by Paul Mijnen.  The Company is based in the Netherlands and is principally engaged in the sale of cleaning and hygiene and catering disposable products predominantly to the healthcare sector.  Revenue in the year ended 31 December 2009 was €9.0 million and the gross assets acquired are estimated to be €3.9 million.

There has been no significant change in Bunzl's financial position during the period and the Group continues to have substantial funding headroom available.  Bunzl's strong cash flow and balance sheet should continue to give the Group opportunities to consolidate further the markets in which it operates.

The Board is confident that Bunzl's market leading positions in relatively resilient sectors and the impact from acquisitions should allow the Group to deliver continued growth.

Enquiries:

Bunzl plc Michael Roney, Chief Executive Brian May, Finance Director Tel: [phone]

Tulchan David Allchurch Martin Robinson Tel: + 44 (0)20 7353 4200

 

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