Bunzl sees revenue growth of 2%

22nd Jun 2010 07:01

Distribution and outsourcing group Bunzl said overall trading is in line with full year expectations with revenue growth of 2%. Operating margin has improved in the six months ending 30 June compared to the same period in 2009 as a result of increases in the UK & Ireland and the Rest of the World, largely due to the favourable impact of cost reduction and the absence of a negative transaction impact from foreign exchange which particularly affected these business areas in the first half of last year. This improvement, combined with the increase in revenue, has led to an increase in overall profitability, the group said. However, revenue in the UK & Ireland in the first half is below the same period last year due to the persisting difficult economic conditions, though the improvement in operating margin has resulted in an increase in profits.In North America the strong underlying revenue growth of the first quarter has continued, led principally by additional business with existing customers. In Continental Europe trading is ahead of the first half of last year due to the impact of recent acquisitions, while the Rest of the World has shown excellent growth due to the favourable impact of currency translation. "Bunzl's geographically diversified and market leading businesses, combined with its strong cash flow and balance sheet, should enable it to take advantage of appropriate opportunities to develop further," the group said.