Bunzl sees improving revenue trend

19th Oct 2009 07:02

Distribution group Bunzl said it had seen a slight improvement in revenues since reporting first half results and that it was benefiting from cost-reduction initiatives.Bunzl, which specialises in the delivery of consumable products that businesses do not actually sell, said underlying revenue in the second half of the year was about 1% lower than the same period the previous year, 'a slight improvement in the growth rate compared to the first half of 2009.' A better performance in continental Europe was the main reason for the better revenues, Bunzl said.It added that overall margins have improved from the first half, largely as a result of cost-reduction initiatives. Bunzl said that while acquisitions remain a key component of its strategy it was having difficulties agreeing on prices with potential acquisitions. 'Bunzl's strong cash flow and balance sheet should however give the group opportunities to consolidate further the fragmented markets in which it operates,' it said.