Underlying revenue growth at Bunzl

20th Apr 2011 07:03

The UK & Ireland are letting the side down at distribution and outsourcing group Bunzl, which has otherwise seen good revenue growth this year.The group said trading so far in 2011 has been consistent with expectations outlined at the time of the group's full year results announcement in February, with underlying revenue growth of 2.5%, despite persistent difficult economic conditions in the UK & Ireland.Overall, revenue in the first quarter was up 12% on the corresponding period of last year, helped by the contribution from acquisitions and the fact that this time round there were two extra trading days in the first quarter.Group operating margin has also increased in the first quarter as a result of an improvement in mix and the additional trading days in the period.There has been no significant change in Bunzl's financial position during the period and the group continues to have substantial funding headroom available. "Bunzl's strong cash flow and balance sheet, together with a promising pipeline of potential acquisition targets, should continue to give the group opportunities to consolidate the markets in which it operates," the statement said. ---jh