Bunzl PLC BNZL Interim Management Statement

  Bunzl PLC (BNZL) - Interim Management Statement

RNS Number : 0382P
Bunzl PLC
19 October 2012
 



 

                                                               19 October 2012

 

         BUNZL INTERIM MANAGEMENT STATEMENT AND ACQUISITION IN THE UK

 

Bunzl  plc,  the  international  distribution  and  outsourcing  Group,  today 
announces its interim management statement for the period since 30 June 2012.

 

Overall trading has been consistent with expectations at the time of the  half 
year results announcement in August.  At constant exchange rates Group revenue
is up 5% for the third quarter and  6% year to date, in each case compared  to 
the equivalent periods  last year, due  to underlying revenue  growth and  the 
positive impact  from acquisitions,  net of  the disposal  of the  UK  vending 
business in August  2011.  There has  been some moderation  in the  underlying 
revenue growth rate to 2% for the third quarter, particularly in North America
where comparatives are challenging due to the strong performance in 2011,  and 
also an increased negative impact from exchange translation of between 2%  and 
3% in the third quarter compared to the same period last year. 

 

In relation to the third quarter, at constant exchange rates:

 

·      In North America revenue growth was 5% with lower underlying growth  of 
2%, compared to the first  half of 2012, due to  a reduction in product  input 
prices, especially for resin based products, and the impact on the growth rate
of a significant new customer which commenced trading with Bunzl in the  third 
quarter of 2011.  There has been a slight improvement in the operating margin.

 

·      In Continental Europe, although the economic environment throughout the
region continues to be weak,  the combination of slightly improved  underlying 
revenue growth  compared  to  the  first  half  of  2012  and  the  impact  of 
acquisitions have led to  strong revenue growth albeit  with a decline in  the 
operating margin.

 

·      UK  & Ireland  showed increased  profits  as a  result of  an  improved 
operating  margin  in  spite  of  a  sluggish  economy  and  continued  modest 
underlying revenue growth.

 

·      In  Rest of  the World  the combination  of underlying  growth and  the 
impact from acquisitions  has led  to substantial revenue  growth albeit  with 
some pressure on the operating margin.

 

Acquisition growth is a  key element of the  Company's strategy and today  the 
Company is  announcing  the purchase  of  Indigo Concept  Packaging  Limited.  
Indigo is based in the  UK and is principally engaged  in the sale of  quality 
retail packaging products  to a  variety of  customers.  Revenue  in the  year 
ended 31 December 2011 was £6 million.  The acquisition pipeline is  promising 
and the Group continues  to expect to complete  more transactions this  year.  
Seven acquisitions have  been announced so  far year to  date with  annualised 
revenue of £163 million.

 

There has been no significant change in Bunzl's financial position during  the 
period  and  the  Group  continues   to  have  substantial  funding   headroom 
available.  The Company's strong cash flow and balance sheet continue to  give 
the Group the flexibility to consolidate the markets in which it competes.

 

Although it  is  difficult  to  predict  the  future  direction  of  economies 
globally, the Board believes that  the Group's businesses, which have  leading 
positions in relatively resilient sectors,  should continue to develop due  to 
underlying growth and the positive impact from acquisitions.

 

Enquiries:

 

Bunzl plc                      Tulchan

Michael Roney, Chief Executive David Allchurch

Brian May, Finance Director    Stephen Malthouse

Tel: 020 7725 5000             Tel: 020 7353 4200

                                

 

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
END
 
 
IMSKMMMGDRFGZZM -0- Oct/19/2012 06:00 GMT