Trading Statement

RNS Number : 4393N

Bunzl PLC

26 October 2016

 

26 October 2016

BUNZL Q3 TRADING STATEMENT AND

ACQUISITIONS IN THE UK, IRELAND AND CZECH REPUBLIC

Bunzl plc, the international distribution and outsourcing Group, today announces its trading statement for the period since 30 June 2016.

Overall performance is consistent with expectations at the time of the half year results announcement in August.  At constant exchange rates, Group revenue for the third quarter has increased by 7%, with 3% contributed by acquisitions and 4% due to the impact of additional trading days relative to the comparable period last year.  Underlying revenue for the quarter was at a similar level to the third quarter last year.  This is consistent with the performance seen in the first half of this year.  The recent weakening of sterling has had a significant positive impact on the reported results for the third quarter.

The Company also announces that it has completed three further acquisitions in the UK, Ireland and the Czech Republic.

Tri-Star Packaging Supplies, which is based near London and has three other branches in England and Scotland, is principally engaged in the distribution of food packaging and foodservice products as well as some cleaning & hygiene consumables.  It supplies a variety of end user customers, including 'food-to-go' retailers, contract caterers and food processors, throughout the UK.  Revenue in 2015 was £28 million.  Kingsbury Packaging is located in Limavady, Northern Ireland and supplies food packaging related products to convenience stores and food retailers in Ireland.  Revenue in 2015 was £5 million.

Bunzl has also purchased Blyth, a Prague based distributor of a broad range of personal protection equipment to a variety of end user customers throughout the Czech Republic and Slovakia.  Revenue in 2015 was CZK182 million (c. £5 million).

Finally, Bunzl confirms that the acquisition of Silwell, which was announced on 30 August 2016, has been completed.

There has been no significant change in Bunzl's financial position during the period and the Group continues to have substantial funding headroom available.  Growth through acquisitions is an important part of the ongoing strategy of Bunzl.  With an active pipeline and ongoing discussions taking place, the Company expects to make further acquisitions over the coming months.

Commenting on the acquisitions, Frank van Zanten, Chief Executive of Bunzl, said:

"The purchase of both Tri-Star and Kingsbury has further expanded our foodservice and food retail product offerings in the UK and Ireland and extended our customer base in these important market sectors.  The acquisition of Blyth represents our first step into the safety sector in the Czech Republic and complements our existing operations in central Europe.  We are pleased to welcome the employees of all of the businesses to the Group."

Enquiries:

Bunzl plc Frank van Zanten, Chief Executive Brian May, Finance Director Tel: [phone]

Tulchan David Allchurch Stephen Malthouse Tel: [phone]

 

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