Bunzl on track for half-year targets

25th Jun 2014 07:40

- Trading remains in line with expectations- Expects positive underlying revenue across business- Negative currency effect to weigh on results Packaging group Bunzl said overall trading has remained consistent with expectations since its last update in April and expects positive underlying revenue growth across all business areas.The FTSE-100 maker of paper cups and food packaging products said revenue for the six months ending June 30th, at constant exchange rates, was expected to grow by around 6%, due to underlying revenue growth of about 2% and the positive impact of acquisitions. Bunzl said all of its business areas were expected to show positive underlying revenue growth and improved operating margins for the period. As it previously announced, the company's reported results at actual exchange rates will be negatively affected by foreign exchange translation.Bunzl announced a further two acquisitions of Allshoes and JPLUS, bringing total acquisition spend to £95m for the year to date."Acquisitions are a key component of the group's growth strategy. The current environment for acquisitions remains positive with a promising pipeline of opportunities," it said in a statement.Bunzl said it has recently refinanced some of its debt facilities by raising $300m in the US private placement market with maturities ranging from seven to 12 years. The group continues to have substantial funding headroom available, it said."Bunzl's strong cash flow, balance sheet and promising acquisition opportunities should enable the group to consolidate further the markets in which it competes."CJ