Trading Statement

RNS Number : 8532X

Bunzl PLC

14 December 2010

 



14 December 2010

BUNZL PRE CLOSE STATEMENT

 

Bunzl plc, the international distribution and outsourcing Group, is updating the market today relating to the twelve months ending 31 December 2010 prior to entering its close period.

The Company announces that:

·     Overall trading is consistent with expectations at the time of the Interim Management Statement in October.  Group revenue growth for the year is expected to be between 3% and 4% due to underlying revenue growth and the positive impact from acquisitions and exchange.  Excluding the impact from the previously announced sale of products related to H1N1 prevention last year, underlying revenue growth is approximately 1.5% as a result of a slight improvement in the second half growth rate compared to the first half of 2010.

·     In North America, the largest business area, underlying revenue growth is strong, albeit with some margin pressure, due largely to increased volumes to existing customers.

·     In the UK & Ireland, although revenue is below that of the previous year due to the persisting difficult economic conditions, margins have increased significantly on 2009. 

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

·     Strong underlying growth and substantial margin improvement has led to excellent profit growth in the Rest of the World.

Acquisitions continue to be a key component of the Group's growth strategy.  The nine acquisitions which have been announced to date in 2010 have annualised revenue of approximately £150 million and are integrating well.  The current environment remains promising and discussions are ongoing with a number of interested parties.

Bunzl's geographically diversified business, strong cash flow and robust balance sheet position the Company well 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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