Interim Management Statement

RNS Number : 5021K

Bunzl PLC

21 April 2010

 



21 April 2010

BUNZL INTERIM MANAGEMENT STATEMENT

Bunzl plc, the international distribution and outsourcing Group, today announces its interim management statement for the period since 31 December 2009.

Overall trading has been consistent with expectations at the time of the annual results announcement in February.  Underlying Group revenue in the first quarter has increased 2% compared to the same period last year led by North America which was up by 5%.  The growth rates of underlying revenue have improved in all of the business areas compared to those for the full year 2009.  Reported Group revenue was down 2% due to the negative impact of currency translation with sterling stronger in the first quarter of 2010 than in the corresponding period last year.  

As anticipated, Group operating margin has improved with margins increasing in the UK & Ireland and the Rest of the World, largely due to the favourable impact of cost reduction initiatives previously taken and the absence of a negative transaction impact from foreign exchange which particularly affected these business areas last year. 

Acquisitions remain a key component of Bunzl's strategy and the Company has announced three acquisitions to date in 2010.  Clean Care and Hamo in Denmark and Weita in Switzerland are all integrating well.

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 should give the Group opportunities to consolidate further the fragmented markets in which it operates.

Although it is still hard to predict the future direction of economies globally, the Board continues to believe that the Group's businesses, which have leading positions in the markets in which they compete, should develop well due to revenue growth and the positive impact of cost reduction initiatives.

Enquiries:

Bunzl plc Michael Roney, Chief Executive Brian May, Finance Director Tel: [phone]

Tulchan David Allchurch Stephen Malthouse Tel: + 44 (0)20 7353 4200

 

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