UK and ROI still a drag on Bunzl

19th Oct 2010 07:48

Bunzl, the international distribution and outsourcing group, said trading in the second half of 2010 has been in line with expectations.Group revenue for the third quarter was up 6% compared to the same period last year, while it has increased 3% year to date, due to underlying revenue growth and the positive impact from exchange rates and acquisitions. Excluding the previously announced one-off positive impact from the sale of products related to H1N1 influenza prevention last year, underlying revenue growth for the third quarter was 1%, the same level as the first half of 2010.The group said the strong underlying revenue growth seen in North America in the first half of the year has continued, though margins remain under pressure. Revenue in the UK & Ireland has remained below 2009 due to the persisting difficult economic conditions, though margins have improved.In Continental Europe, after adjusting for the windfall sales from the H1N1 flu scare, both revenue and operating profit were ahead of the prior year, principally due to the impact of acquisitions.In the Rest of the World the combination of strong underlying revenue growth and margin improvement has led to excellent profit growth compared to the same period last year, the company said.The group accompanied its trading statement with news of a bolt-on acquisition. It has purchased W. Van't Veer Verpakkingen from a privately owned company controlled by Paul Mijnen. The company is based in the Netherlands and is principally engaged in the sale of cleaning and hygiene and catering disposable products predominantly to the healthcare sector. Revenue in the year ended 31 December 2009 was €9.0m and the gross assets acquired are estimated to be €3.9m.