Bunzl acquires UK, Mexico businesses

27th Aug 2013 07:14

Distribution and outsourcing company Bunzl posted a robust set of half year results, despite challenging conditions particularly in Europe, and announced acquisitions in Mexico and the UK."We have a promising acquisition pipeline and have had an encouraging start to the second half of 2013 with two acquisitions, Espomega in Mexico and TFS in the UK," the group said.Bunzl said profit before tax, intangible amortisation and acquisition related costs was £167.6m for the six months ended June 30th 2013 compared to £149.0m a year earlier, an increase of 10% at constant exchange rates. Adjusted earnings per share on the same basis were 37.1p from 33.1p before. Group revenue rose to £2.9bn, up 11% at constant exchange rates, driven by underlying growth of 1.9%.Across its regions North America revenue rose 14% due to sales growth with existing customers, new business wins and the impact of a number of businesses acquired during the course of last year, Bunzl said.Continental Europe revenue rose by 2.5% to £577.4m and operating profit increased by 1.5% to £47.7m, after acquisitions in Israel and Switzerland. Chief Executive Michael Roney said: "These results once again demonstrate the resilience and reliability of our business model and strategy with double digit growth in revenue, earnings and dividends.""Looking forward, although the macroeconomic outlook remains challenging in some markets, we believe that our strong competitive position and the opportunities to consolidate our fragmented markets further should enable the group to show continued growth during the rest of the year."The board underlined its confidence in future trading with a 14% increase in its dividend to 10.0p.CJ