Interim Management Statement

RNS Number : 7068Q

Bunzl PLC

25 October 2011

 



25 October 2011

BUNZL INTERIM MANAGEMENT STATEMENT - STRONG TRADING CONTINUES

Bunzl plc, the international distribution and outsourcing Group, today announces its interim management statement for the period since 30 June 2011.

Overall trading has remained strong and in line with expectations at the time of the half year results announcement in August.  At constant exchange rates and after adjusting for a higher number of trading days in 2011 compared to the same periods in 2010, Group revenue in both the third quarter and year to date has increased 6% compared to last year due to underlying growth of about 3.5% and the positive impact from acquisitions. Compared to the same periods last year, Group operating margin has also improved in both the third quarter and year to date.

In relation to the third quarter:

·      In North America underlying revenue growth continues to be strong at a similar level to the first half and the operating margin is stable.

·      Against a backdrop of a continuing weak economy in the UK & Ireland, operating margin has improved although the underlying revenue is slightly behind the same period in 2010.

·      In Continental Europe revenue has increased strongly with underlying revenue growth at a similar level to the first half.  Operating margin has also improved.

·      In the Rest of the World the combination of good underlying revenue growth, operating margin improvement and the positive impact from acquisitions and exchange has led to continued strong revenue and profit growth.

Acquisitions are a key component of Bunzl's growth strategy.  Year to date the Company has announced nine acquisitions and invested more than £145 million acquiring businesses with annualised revenue in excess of £165 million.  The pipeline continues to be promising.

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

In spite of challenging economic conditions, the Board is confident that Bunzl's geographically diversified business, its market leading positions in relatively resilient sectors and the impact from acquisitions should allow the Group to deliver further growth.

Enquiries:

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

Tulchan David Allchurch Stephen Malthouse Tel: [phone]

 

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