Trading Statement

RNS Number : 9649N

Bunzl PLC

22 June 2010

 



22 June 2010

BUNZL PRE CLOSE STATEMENT

 

Bunzl plc, the international distribution and outsourcing Group, is updating the market today relating to the six months ending 30 June 2010 prior to entering its close period.

The Company announces that:

·     Overall trading is in line with full year expectations with Group revenue growth of 2%.  Group operating margin has improved compared to the same period in 2009 as a result of increases in the UK & Ireland and the Rest  of the World, largely due to the favourable impact of cost reduction initiatives previously taken and the absence of a negative transaction impact from foreign exchange which particularly affected these business areas in the first half of last year.  This improvement, combined with the increase in revenue, has led to an increase in overall Group profitability.

·     In North America the strong underlying revenue growth of the first quarter has continued, led principally by additional business with existing customers.

·     Although revenue in the UK & Ireland in the first half is below the same period last year due to the persisting difficult economic conditions, the improvement in operating margin has resulted in an increase in profits.

·     In Continental Europe trading is ahead of the first half of last year due to the impact of recent acquisitions.

·     The Rest of the World has shown excellent growth due to the favourable impact of currency translation, strong underlying growth in Brazil and a significant improvement in operating margin in Australasia.

·     Acquisitions remain a key component of Bunzl's strategy.  The five acquisitions which have been announced to date in 2010 have annualised revenue of £85 million and are integrating well.  The Company expects that the current environment will lead to more transactions being finalised during the remainder of the year.

Bunzl's geographically diversified and market leading businesses, combined with its strong cash flow and balance sheet, should enable it to take advantage of appropriate opportunities to develop further.

Enquiries:

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

Tulchan David Allchurch Stephen Malthouse Tel: [phone]

 

END

 

 

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