Distribution firm Bunzl soars on acquisitions and rise in revenue

 
Suzie Neuwirth

BUNZL, the distribution and outsourcing firm, saw its shares climb yesterday after it unveiled three new acquisitions and a rise in revenue and profit.

The FTSE 100 company said that trading was in line with expectations, with revenue up five per cent in the first quarter compared to the same period last year, while operating profit rose 10 per cent.

Bunzl has historically used acquisitions to supplement organic growth. Its latest purchases are Chilean footwear supplier Tecno Boga, US hygiene supplies distributor Plast Techs Enterprises and New Zealand’s Nelson Packaging Supplies, which collectively generate revenues of £40m. “Acquisition activity has continued at a good pace during the first quarter of the year with six acquisitions completed for a total committed spend of £80m,” said chief executive Michael Roney.

The company said it remained confident of further growth due its “strong cash flow and balance sheet, together with a promising acquisition pipeline”.

In February Bunzl reported a 15 per cent rise in full-year earnings per share, ahead of market forecasts.

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