Bunzl Pre-Close Statement
Bunzl Pre Close Statement
24 Jun 2011
Bunzl plc, the international distribution and outsourcing Group, is updating the market today relating to the six months ending 30 June 2011 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 April. At constant exchange rates Group revenue is expected to have increased 6%, due to underlying growth of 3% and the positive impact from acquisitions, with a slight improvement in operating margin. After adverse currency translation movements, the revenue growth rate is expected to be 4%.
- In North America underlying revenue growth continues to be strong at approximately 4.5% and operating margins are similar to the comparable period last year.
- In the UK & Ireland, although revenue continues to be below 2010 due to continuing difficult trading conditions, operating profit is at a similar level.
- In Continental Europe the underlying revenue growth rate has improved to more than 4% with consistent operating margins.
- Underlying revenue growth of about 5%, combined with a slight improvement in operating margins, has led to good profit growth in the Rest of the World.
Acquisitions continue to be a key component of the Group’s growth strategy. The five acquisitions which have been announced to date in 2011 have annualised revenue of approximately £80 million. These acquisitions, together with the nine acquisitions announced in 2010, are integrating well. The current environment is promising and the Company is continuing discussions with a number of interested parties.
Bunzl’s well established competitive position, international growth strategy and strong cash flow and balance sheet should enable the Company to continue to increase shareholder value.
