Bunzl announces acquisitions as Q1 revenue rises

16th Apr 2014 07:01

Bunzl said revenue in the first quarter rose five per cent compared to the previous year as the distribution and outsourcing group continued to expand through acquisitions.Group operating profit in the first three months of 2013 climbed 10%, according to a trading update on Wednesday. The operating margin grew in three of the company's businesses and was flat in the fourth. However, the firm warned that results at actual exchange rates have been negatively affected by foreign exchange translation. Bunzl also announced it has completed further acquisitions in Chile, the US and New Zealand, as part of its strategy for growth. The company has bought Tecno Boga SA, a supplier of own label protective footwear in Chile, and Plast Techs Enterprises, which provides foodservice, cleaning and hygiene supplies to distributors in California. Bunzl also purchased New Zealand firm Nelson Packaging Supplies, which offers packaging and cleaning and hygiene supplies to commercial and industrial market sectors. "Acquisition activity has continued at a good pace during the first quarter of the year with six acquisitions completed for a total committed spend of £80m," said Chief Executive Michael Roney.The group said there has been no significant change in its financial position and it has substantial funding headroom available. A strong cash flow and balance sheet, along with a promising acquisition pipeline, is expected to provide opportunities to consolidate the markets in which Bunzl operates and deliver further growth.RD