Bunzl confirms numbers on track for full year

11th Dec 2013 07:12

Distribution group Bunzl confirmed full-year revenue and margins figures were still in line with recent guidance, as it approached its year end. As at its October third-quarter results, the FTSE 100 company said annual revenue growth at constant exchange rates is expected to be around 12%, with underlying revenue growth of about 2% and the positive impact of acquisitions, with operating margins at a similar level to the prior year, when it was 6.6%.The pre-close statement pointed to roughly £250m spent on eight acquisitions during the year to date, which has added annualised revenue of around £245m.Bunzl added that the environment for further acquisitions remained positive and that it retained both strong cash flow and balance sheet that should continue to enable it to take advantage of any these opportunities to consolidate its markets.A recent note from broker Investec praised Bunzl for its "solid, reliable" business model, management and a company that "reliably executes on its strategy of consolidating organic growth through bolt-on acquisitions, from which it leverages handsome returns". "Though current valuation is at a premium to the broader support services sector, we believe this is warranted given Bunzl's track record of delivery against expectations."OH