Bunzl says acquisitions to boost full-year revenue growth

Bunzl Plc (LON: BNZL.L), Britain's distribution and outsourcing company, sees full year group revenue growth to be between 3 percent and 4 percent boosted by acquisitions.

The supplier of consumable products such as food packaging, disposable tableware and catering equipment has been on an acquisition spree, with nine purchases so far this year. Over the last ten years, the company has spent an average of 127 million pounds per annum on acquisitions, completing over 50 transactions.

The nine acquisitions in 2010 have annualised revenue of about 150 million pounds ($238 million) and are integrating well, it said on Tuesday.

The current environment remains promising and discussions are ongoing with a number of interested parties, Bunzl said.

In North America, the largest business area, the company said underlying revenue growth is strong, but with some margin pressure, due largely to increased volumes to existing customers.

In the UK & Ireland, margins have increased significantly on 2009, though revenue is below last year due to the persisting difficult economic conditions, it said.

In Continental Europe, it said revenue and operating profit were positively impacted by the sale of H1N1 prevention products in 2009, particularly in the second half.

Strong underlying growth and substantial margin improvement has led to excellent profit growth in the Rest of the World, Bunzl added.

For the first half ended June 30, the company posted a 6 percent rise in pretax profit to 100 million pounds, as revenue rose 2 percent to 2.34 billion pounds.

Shares of Bunzl, a FTSE-100 constituent, ended Monday's trading at 707.50 pence on the London Stock Exchange, 9.82 percent below its 52-week high of 784.50, set on April 29, 2010.