Bunzl PLC (BNZL) - Interim Management Statement
RNS Number : 0382P
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
· 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.
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
IMSKMMMGDRFGZZM -0- Oct/19/2012 06:00 GMT
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