Bunzl on the prowl

24th Jun 2011 07:12

Distribution and outsourcing firm Bunzl is trading in line with expectations, despite tough times in its UK and Irish markets.At constant exchange rates group revenue in the six months to the end of April is expected to have increased 6% year-on-year, 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%.North America has seen underlying revenue growth of around 4.5%, while operating margins are on a par with the comparable period of last year.Revenue in the UK and Ireland is stuck below last year's level but 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, while 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.Bunzl remains committed to augmenting organic growth with acquisitions and described the environment for adding more companies to the Bunzl group as "promising", adding that it is in discussion with a number of interested parties. --jh