Interim Management Statement

RNS Number : 9406A

Bunzl PLC

19 October 2009

 



19 October 2009

BUNZL INTERIM MANAGEMENT STATEMENT

Bunzl plc, the international distribution and outsourcing Group, today announces its interim management statement for the period since 30 June 2009.

Overall trading has been consistent with expectations at the time of the half year results announcement in August. Group revenue in the third quarter has increased 8% compared to the same period last year due to the positive impact of exchange. Underlying revenue is approximately 1% lower than the same period in the prior year which is a slight improvement in the growth rate compared to the first half of 2009, principally due to a better performance in Continental Europe. As anticipated, overall margins have improved compared to the first half largely due to the favourable impact of cost reduction initiatives already taken and a reduced negative transaction impact from foreign exchange.

While acquisitions remain a key component of Bunzl's strategy and discussions continue with a number of potential targets, the difference in the Company's price expectations and those of prospective sellers continues to be an impediment to finalising transactions. Bunzl's strong cash flow and balance sheet should however give the Group opportunities to consolidate further the fragmented markets in which it operates.

There has been no significant change in Bunzl's financial position during the period and the Group continues to have substantial committed funding headroom available.

The Board is confident that Bunzl's market leading positions in relatively resilient sectors, together with the positive impact of currency and the results of cost reduction initiatives, should enable the Group to develop positively.

Enquiries:

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

Tulchan David Allchurch Stephen Malthouse Tel: [phone]

 

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