Bunzl on track

21st Apr 2010 07:14

Distribution and outsourcing group Bunzl said trading in the period since 31 December has been in line with expectations.Underlying revenue in the first quarter was up 2% on last year led by North America which was 5% higher. However, reported revenue was down 2% due to the negative impact of currency translation with sterling stronger in the first quarter of 2010 than in the corresponding period last year. Operating margin has improved with margins increasing in the UK & Ireland and the rest of the world, largely due to the favourable impact of cost reduction initiatives previously taken and the absence of a negative transaction impact from foreign exchange which particularly affected these business areas last year. "Although it is still hard to predict the future direction of economies globally, the board continues to believe that the group's businesses, which have leading positions in the markets in which they compete, should develop well due to revenue growth and the positive impact of cost reduction initiatives," the group said.