Interim Results

BUNZL PLC
31 August 1999

                                       
                INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 1999
                                       
                                       
Bunzl plc, the international services Group, today announces its interim
results for the six months to 30 June 1999.

Highlights

*   sales up 6% to £1,007.6 million (1998: £953.5 million)

*   operating profit up 11% to £74.0 million (1998: £66.9 million)

*   Outsourcing Services powers ahead with sales up 11% and profit up 17%

*   profit before tax, goodwill amortisation and exceptional items up 15% to
    £71.9 million (1998: £62.6 million)

*   adjusted earnings per share up 13% to 10.2p (1998: 9.0p)

*   further improvement in Group margin from 7.0% to 7.3%

*   interim dividend increased 10% to 2.75p (1998: 2.5p)

*   acquisition of Provend for £28.5 million

Commenting on the results, Anthony Habgood, Chairman, said:

'These strong results reflect good volume growth in the business enhanced by
acquisitions more than offsetting the effects of period-on-period deflation.

'There is growing evidence that the deflationary environment we have seen over
the past three years is ending.

'Given a more stable currency backdrop and more encouraging price trends, the
continued organic growth of our businesses supplemented by acquisition
activity gives us confidence that the Group will continue its progress.'

Enquiries:

Bunzl plc                                               Finsbury
Anthony Habgood, Chairman                               Roland Rudd
David Williams, Finance Director                        Rupert Younger
Tel:  [phone]                                     Tel:  [phone]
   


RESULTS

Operating profit rose 11% to £74.0 million (1998: £66.9 million) on sales up
6% to £1,007.6 million (1998: £953.5 million).  Profit from continuing
operations before goodwill amortisation rose by 10% to £73.9 million (1998:
£67.2 million) on sales up 7% to £971.5 million (1998: £906.4 million) as good
organic volume growth supplemented by the effect of acquisitions, especially
in Outsourcing Services, outstripped period-on-period deflation.  After
goodwill amortisation, profit on continuing operations rose 9% to £72.7
million (1998: £66.9 million).

Lower interest charges partially offset by a lower profit on the sale of
discontinued operations resulted in profit before tax being 13% higher at
£70.7 million (1998: £62.8 million).  Earnings per share rose 11% to 10.0p
(1998: 9.0p) while adjusted earnings per share, after eliminating the profit
on the sale of discontinued operations and goodwill amortisation, rose 13% to
10.2p (1998: 9.0p).

Continuing spend on acquisitions, net of receipts from disposals, exceeded
cash generated from operations resulting in net debt rising from £100.6
million in December 1998 to £116.6 million.  Gearing at 39.4% was marginally
higher than in December 1998 (37.7%).


DIVIDEND

The Board has decided to increase the dividend to 2.75p (1998: 2.5p).
Eligible shareholders will again be able to participate in our dividend
reinvestment plan introduced in April.


ACQUISITIONS AND DISPOSALS

During the period the cost of acquisitions was £37 million.  This included in
particular the acquisition of Provend Group PLC in March for a consideration
of £28.5 million.  Provend, a distributor of disposables and vending
ingredients and a leading operator of vending machines in the UK, further
strengthens our position in our Outsourcing Services business and gives us a
first entry into the growing vending sector.

Following the disposal of three small plastics operations in 1998, we sold our
UK plastic strapping business in May.  Assets sold were £2.5 million as of 31
December 1998.  After the closure of our job-lot converting operations in
Chicago, the ongoing business in Philadelphia, which had net assets at the
half year of £9.9 million, was sold in August.  This completes our exit from
job-lot converting and will enable us to concentrate our resources further on
service oriented outsourcing, distribution and light manufacture.

Disposals during the period raised £6 million and the overall effect of
exiting job-lot in August will be cash positive.


THE BOARD

In May David Williams was appointed Finance Director in succession to John
Bason who left to take up a position outside the Group.  In June Paul
Lorenzini was appointed to the Board as Managing Director, Outsourcing
Services, with continuing responsibility for our largest and most successful
business.


PROSPECTS

Bunzl's main businesses have continued to experience strong underlying volume
growth reflecting both the markets in which we directly compete and our
position in those markets.  This volume growth continues to be enhanced by
acquisitions.

There is growing evidence that deflation, which has been a feature of the
products that we supply for over three years and which continued to affect
sales growth negatively in the first half of 1999, is ending.  Price rises in
the US since the end of the first quarter have been sustained and the full
year is likely to show little overall price movement relative to 1998.  In the
UK price rises have lagged behind those in the US partly due to the strength
of sterling and prices in 1999 are likely to be lower than average prices in
1998.  However, price rises due in the autumn, particularly in Paper
Distribution, may signal the beginning of the end of deflation in the UK as
well.

Given a more stable currency backdrop and more encouraging price trends, the
continued organic growth of our businesses supplemented by acquisition
activity gives us confidence that the Group will continue its progress.


OPERATING REVIEW

Increases in sales and operating profit before goodwill amortisation on
continuing operations of 7% and 10% respectively, combined with the improved
mix of business with the exit from job-lot, fuelled an increase in Group
margin from 7.0% to 7.3% and in Group return on capital employed from 31.1% to
34.3%.  This was achieved despite the continuation of period-on-period price
deflation as the welcome shift to price rises in the second quarter was too
late to make up for the very low price levels at which the year began.

Outsourcing Services performed exceptionally well in both North America and
Europe with strong contributions from recent acquisitions and good continuing
organic growth.


Outsourcing Services

Operating across North America, Europe and Australia, Bunzl is a leading
supplier of outsourced food packaging, disposable supplies and cleaning and
hygiene products for supermarkets, caterers, hotels and contract cleaners.

Our largest and most successful business area achieved another excellent set
of results with profits up 17% on sales up 11%.  Profits rose as operating
costs were further reduced and as a loss making acquisition, the grocery
supply business of xpedx, started to contribute and both it and Provend were
integrated into the Group.  Good underlying organic growth and a small
favourable currency movement more than offset price deflation.

North America: Following three years of price deflation as prices of both
plastic and paper based products fell, there were substantial price increases
on many products in March and during the second quarter.  For the period as a
whole, however, average prices were lower than in the first half of 1998.

We had continued success in growing the business organically by being the
preferred supplier of outsourced disposable packaging for our customers who
are attracted to us by our specialist knowledge, efficient service and
competitive prices.  The end market continues to grow as lifestyle and retail
trends lead to greater demand for Takeout Foods.

The loss making grocery supply business of the xpedx division of International
Paper was acquired in November 1998.  It increased our outsourced disposable
supplies business across the US and it is a tribute to the managers who have
integrated this business that it contributed to profits within six months.

Europe: During the period significant new business was won, for example with
contract caterers and with retail chains both for staff canteens and in-store
packaging products.  This strong organic growth both in the UK and mainland
Europe indicates the continued success of our partnership approach with both
customers and suppliers.

In March we acquired Provend Group PLC for a consideration of £28.5 million
and its two businesses have now been separated.  The wholesale supply of
disposable products and vending ingredients to the catering and vending
industry has been integrated with ACS Whittaker and the product range and
customer base are now on our IT system.  The vending business, Provend
Services, which services, supplies and operates vending machines dispensing
drinks and snacks to staff in offices, commercial buildings and retail
outlets, is now operating largely as a stand alone business while benefiting
from synergies in purchasing and with key accounts.  The acquisition has
brought us a substantial additional disposables supplies business in the UK
and a leading player in the closely related vending sector with particular
strengths with the major retailers.


Filtrona

Filtrona is the world's leading supplier of outsourced cigarette filters
especially for the growing low tar market while SupastripR is the leading
brand of self-adhesive tear tape used for the easy opening of film over-
wrapped consumer products.

Profits were marginally ahead on sales which were down 1% despite continuing
satisfactory growth in the volume of multiple filters for low tar smoking and
other encouraging developments in the market.  Results in the UK and the US
were good and plans to move our operations in Richmond, Virginia to a new
facility are well advanced.  This will involve the construction of a new plant
which will incorporate filters, the newer technology fibre products, tear tape
finishing and the instruments sales and service operation.

Headline sales were held back for a number of reasons.  In Tenerife and
Pakistan sales halved as B.A.T closed its cigarette plant in Gran Canaria and
our major customer in Pakistan took the production of relatively simple
filters in-house.  The 37% devaluation in Brazil more than offset our strong
growth measured in local currency.  Finally the first half of 1998 included
sales of our Australian subsidiary which was closed last year.

We began production on schedule at the end of the half year in a substantial
new facility in Venezuela.  It follows a decision by Bigott, the B.A.T
subsidiary, to outsource to us the total supply of its filters, which are
exclusively multiples.  This represents a significant development for
Filtrona, providing us with a sizeable production base of multiple filters in
the region.


Paper Distribution

In the UK and Ireland Bunzl is one of the largest independent fine paper
merchants distributing a wide range of high quality printing, writing and
copier papers primarily to printers.

Sales were up 4% reflecting impressive double digit increases in the volume of
paper distributed.  This was largely negated by the continued high level of
deflation, with the first price rises coming too late to impact the period.
Margins suffered as deflation took its toll with the profits increase held
back to 1%.

Prices of uncoated paper rose slightly in June and, with supply lines
tightening for certain grades, steeper rises are expected for both coated and
uncoated papers in the autumn.  These rises are expected to mark the beginning
of the end of the current deflationary period which has lasted well over three
years reflecting both the global supply/demand balance for paper and pulp and
also the strengthening of sterling against the German mark and then the euro.

We expect to see continued growth in the supply of specialist products, such
as digital papers, for particular markets.  In January we acquired the screen
and display products distribution business of Caxton thereby increasing our
presence in this market.  It has been integrated into Europoint marking a
further development for us of this successful business.


Plastics

Bunzl is a world leader in plastic caps and plugs for protecting engineered
products whether in manufacture or transit and is also a leading extruder of
custom profiles used in transportation, lighting, retail and other end uses.

Operating profit increased by 2% on sales that were down 4%.

Sales and profits in caps and plugs were both down somewhat as the recent
increases in oil prices have not yet led to a revival in the low level of oil
exploration projects and the subsequent use of MSI high specification
protectors in that sector.  Moss has also continued to suffer in export
markets from the strength of sterling.  A project to consolidate warehouse
facilities and manufacturing plant on to one site in Kidlington is being
implemented with the warehouse already under construction.  These moves will
cut costs, improve efficiency and enhance customer responsiveness.

The extrusion business continued to grow although the slowdown of business in
aerospace due to the currency devaluations in Asia held back sales at our
Yakima plant in the US.  We are continuing to modernise and extend our
facilities in North America and we have also expanded our successful operation
in the Netherlands.

Our Brazilian business progressed well when measured in local currency but the
37% devaluation meant that sales suffered considerably when translated into
sterling.  In our other smaller businesses both Stewart and Morane increased
profits, while in May we sold our small UK plastic strapping business.


                                       
                     CONSOLIDATED PROFIT AND LOSS ACCOUNT


                               Six months to   Six months to         Year to
                                     30.6.99         30.6.98        31.12.98
                                          £m              £m              £m
------------------------------------------------------------------------------
Sales                                                       
Existing businesses                    957.8           906.4         1,852.5
Acquisitions                            13.7                       
                               -----------------------------------------------
Continuing operations                  971.5           906.4   +7%   1,852.5
Discontinued operations                 36.1            47.1            86.8
                               -----------------------------------------------
Total sales                          1,007.6           953.5         1,939.3
                               -----------------------------------------------
                                                           
Operating profit                                            
Existing businesses                     72.3            66.9           138.9
Acquisitions                             0.4                        
                               -----------------------------------------------
Continuing operations                   72.7            66.9   +9%     138.9
Discontinued operations                  1.3             -               0.5
                               -----------------------------------------------
Total operating profit                  74.0            66.9  +11%     139.4
                                                    
Profit on sale of discontinued
 operations                              -               0.5            0.5
Provision for loss on
 discontinued operations                 -               -            (17.9)
                               -----------------------------------------------
Profit on ordinary activities
 before interest                        74.0            67.4          122.0
Net interest payable                    (3.3)           (4.6)          (8.2)
                               -----------------------------------------------
Profit on ordinary activities
 before taxation                        70.7            62.8  +13%    113.8   
------------------------------------------------------------------------------
Profit before taxation, goodwill
 amortisation and exceptional items     71.9            62.6  +15%    132.3
------------------------------------------------------------------------------
Taxation on profit on ordinary 
 activities                            (25.5)          (22.1)         (41.6)
                               -----------------------------------------------
Profit on ordinary activities 
 after taxation                         45.2            40.7           72.2
Profit attributable to 
 minorities                             (0.1)           (0.2)          (0.3)
                               -----------------------------------------------
Profit for the period                   45.1            40.5           71.9
Dividends paid and proposed            (12.5)          (11.4)         (33.3)
                               -----------------------------------------------
Retained profit                         32.6            29.1           38.6
                               -----------------------------------------------

Earnings per share                      10.0p            9.0p          15.9p
                               -----------------------------------------------
Adjusted earnings per share             10.2p            9.0p +13%     19.0p
                               -----------------------------------------------
Diluted earnings per share               9.9p            8.9p          15.8p
                               -----------------------------------------------
Dividends per share                      2.75p           2.5p +10%      7.35p
                               -----------------------------------------------
                                                   



                          CONSOLIDATED BALANCE SHEET


                                     30.6.99         30.6.98        31.12.98
                                          £m              £m              £m
------------------------------------------------------------------------------
Fixed assets                                                 
Intangible assets - goodwill            65.7            25.2            28.5
Tangible assets                        202.2           190.3           189.2
                               -----------------------------------------------
                                       267.9           215.5           217.7
Current assets                                        
Stocks                                 168.8           166.8           165.9
Debtors                                346.8           323.2           319.2
Investments                             10.7             8.6             8.7
Cash at bank and in hand                23.7            23.2            27.2
                               -----------------------------------------------
                                       550.0           521.8           521.0
Current liabilities                   (343.4)         (299.9)         (306.9)
                               -----------------------------------------------
Net current assets                     206.6           221.9           214.1
Total assets less current 
 liabilities                           474.5           437.4           431.8
Creditors: amounts falling due                        
 after more than one year             (130.2)         (136.6)         (119.9)
Provisions for liabilities and 
 charges                               (47.0)          (40.3)          (43.2)
                               -----------------------------------------------
Net assets                             297.3           260.5           268.7
                               -----------------------------------------------
Capital and reserves                                  
Called up share capital                113.7           113.3           113.4
Other reserves                         181.9           145.4           153.5
                               -----------------------------------------------
Shareholders' funds:  equity
 interests                             295.6           258.7           266.9
Minority equity interests                1.7             1.8             1.8
                               -----------------------------------------------
                                       297.3           260.5           268.7
                               -----------------------------------------------



                       CONSOLIDATED CASH FLOW STATEMENT


                               Six months to   Six months to         Year to
                                     30.6.99         30.6.98        31.12.98
                                          £m              £m              £m
------------------------------------------------------------------------------
Total operating profit                  74.0            66.9           139.4
Adjustments for non-cash items          10.4            12.0            20.4
Working capital movements                1.3            (5.1)           (0.9)
Other cash movements                    (0.7)           (2.9)           (5.2)
                               -----------------------------------------------
Net cash inflow from operating 
 activities                             85.0            70.9           153.7
Net cash outflow for returns on                        
 investments and servicing of finance   (8.2)           (7.9)          (11.6)
Tax paid                               (21.4)          (25.4)          (40.9)
Net cash outflow for capital 
 expenditure                           (21.9)          (15.3)          (32.2)
Purchase of businesses                 (34.8)          (35.4)          (42.6)
Sale of businesses                       5.8            15.3            17.1
Other acquisition and disposal
 effects                                (3.0)            0.5             0.3
Equity dividends paid                  (11.3)          (10.4)          (30.7)
                               -----------------------------------------------
Net cash (outflow)/ inflow before
 financing                              (9.8)           (7.7)           13.1
Management of liquid resources           5.3             0.1            (5.0)
Net cash inflow / (outflow) from 
 financing                               7.2             8.4            (5.9)
                               -----------------------------------------------
Increase in cash                         2.7             0.8             2.2
                               -----------------------------------------------
                                                      
Reconciliation of net cash flow                        
 to movement in net debt
Increase in cash in the period           2.7             0.8             2.2
Decrease in debt due within one
 year                                    -               5.7            10.9
Increase in debt due after one 
 year                                   (6.8)          (11.5)           (1.5)
(Decrease)/increase in current 
 asset investments                      (5.3)           (0.1)            5.0
Exchange and other movements            (6.6)            3.1             1.3
                               -----------------------------------------------
Movement in net debt in the
 period                                (16.0)           (2.0)           17.9
Opening net debt                      (100.6)         (118.5)         (118.5)
                               -----------------------------------------------
Closing net debt                      (116.6)         (120.5)         (100.6)
                               -----------------------------------------------
                                                      



          CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


                               Six months to   Six months to         Year to
                                     30.6.99         30.6.98        31.12.98
                                          £m              £m              £m
------------------------------------------------------------------------------
Profit for the period                   45.1            40.5            71.9
Revaluation of properties                -               -              (3.8)
Currency translation differences                       
 on foreign currency net investments    (5.6)           (1.2)           (4.7)
                               -----------------------------------------------
Total recognised gains and losses 
 for the period                         39.5            39.3            63.4
                               -----------------------------------------------



                    ANALYSIS OF SALES AND OPERATING PROFIT


                                       Sales                Operating profit
               -----------------------------  ------------------------------
                      Six       Six     Year        Six        Six      Year
                months to months to       to  months to  months to        to
                  30.6.99   30.6.98 31.12.98    30.6.99    30.6.98  31.12.98
                       £m        £m       £m         £m         £m        £m
----------------------------------------------------------------------------
Continuing                                                        
 operations
Outsourcing
 Services           642.3     578.8  1,211.3       43.6       37.2      86.7  
Filtrona             98.6      99.3    195.4       14.8       14.6      27.0
Paper            
 Distribution       141.8     136.0    268.1        9.6        9.5      17.5
Plastics             88.8      92.3    177.7       11.8       11.6      20.9
Goodwill                                           (1.2)      (0.3)     (1.1)
Corporate                                          (5.9)      (5.7)    (12.1)
 activities
               -------------------------------------------------------------- 
                    971.5     906.4  1,852.5       72.7       66.9     138.9
Discontinued 
 operations          36.1      47.1     86.8        1.3        -         0.5
               --------------------------------------------------------------
Total             1,007.6     953.5  1,939.3       74.0       66.9     139.4
               -------------------------------------------------------------- 
                                
                                       
                                       
Notes

Basis of preparation

The interim financial information has been prepared on the basis of the
accounting policies set out in the Group's 1998 statutory accounts, except as
noted below, and was approved by the Board on 31 August 1999.

The Accounting Standards Board issued FRS12 'Provisions, Contingent
Liabilities and Contingent Assets' in September 1998 and the Group has adopted
the requirements of this standard from 1 January 1999.

The figures for the six months to 30 June 1999 and 30 June 1998 are unaudited
and do not constitute statutory accounts. However, the auditors have carried
out a review of the figures to 30 June 1999 and their report is set out below.
The figures for the year to 31 December 1998 are taken from the statutory
accounts which have been filed with the Registrar of Companies.   The
auditors' report on those accounts was unqualified and did not contain any
statement under Section 237 of the Companies Act 1985.

Adjusted earnings per share

Basic and diluted earnings per share are calculated using a weighted average
number of shares of 451.6m and 455.3m respectively (1998: 450.8m and 454.7m).

Adjusted earnings per share is based on earnings of £46.3m (1998: £40.5m),
being the earnings for the six months to 30 June 1999 excluding the goodwill
amortisation charge of £1.2m.  In 1998 the adjustment comprised goodwill
amortisation of £0.3m less the profit on sale of discontinued operations, net
of taxation, of £0.3m.

Taxation

A taxation charge of 35.5% (1998: 35.0%) on the profit on underlying
operations excluding goodwill amortisation has been provided based on the
estimated effective rate of  taxation for the year, the UK taxation charge
being £5.2m (1998: £3.6m).

Dividends

An interim dividend of 2.75p per share has been declared and will be paid on
11 January 2000 to shareholders on the register on 3 December 1999.  With the
abolition of foreign income dividends from April 1999, the interim dividend
will be paid as an ordinary dividend.

Year 2000

The Group has a formal programme designed with the assistance of external
advisers to achieve year 2000 compliance.

The programme covers all Group locations and key management in each business
area have ensured that all systems, equipment and facilities have been
addressed.  Group management have established minimum standards for the
compliance work and the BSI definition of year 2000 compliance has been
adopted.  The programme comprises a series of commonly defined milestones and
achievement of each stage requires approval by the senior management of the
business area.  Progress is reported to the Audit Committee and the Board of
Directors.  The Group's internal auditors regularly review adherence to the
programme in the business areas.

There is no dependence on a single critical system within the Group.  A review
of internal systems, equipment and facilities in each business has been
completed and testing or replacement programmes are either complete or well
advanced.  Remaining work is scheduled to be completed before the end of the
third quarter of 1999.  Suppliers have been contacted and will remain under
review to ensure, so far as is possible, the continuity of key supplies and
services and contingency plans are being prepared.  However, given the general
uncertainty inherent in the year 2000 problem, including possible failures in
even the best run programmes and the potential inability of third parties to
deal with the issue, the Group is unable to give categorical assurances as to
its year 2000 compliance.

The total cost of the programme is not expected to exceed £4m, of which some
£3.5m has been spent to date.  This includes both internal and external
revenue and capital costs.  No material costs are currently projected for the
year 2000 or beyond.


Independent review report by KPMG Audit Plc to Bunzl plc

Introduction  - We have been instructed by the Company to review the financial
information set out in the Consolidated Profit and Loss Account, Consolidated
Balance Sheet, Consolidated Cash Flow Statement, Consolidated Statement of
Total Recognised Gains and Losses, Analysis of Sales and Operating Profit and
Notes.  We have read the other information contained in the interim report and
considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.

Directors' responsibilities - The interim report, including the financial
information contained therein, is the responsibility of, and has been approved
by, the directors.  The Listing Rules of the London Stock Exchange require
that the accounting policies and presentation applied to the interim figures
should be consistent with those applied in preparing the preceding annual
accounts except where they are to be changed in the next annual accounts, in
which case any changes, and the reasons for them, are to be disclosed.

Review work performed - We conducted our review in accordance with guidance
contained in Bulletin 1999/4 'Review of interim financial information' issued
by the Auditing Practices Board.  A review consists principally of making
enquiries of group management and applying analytical procedures to the
financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed.  A review is substantially
less in scope than an audit performed in accordance with Auditing Standards
and therefore provides a lower level of assurance than an audit.  Accordingly
we do not express an audit opinion on the financial information.

Review conclusion - On the basis of our review we are not aware of any
material modifications that should be made to the financial information as
presented for the six months ended 30 June 1999.

KPMG Audit Plc
Chartered Accountants
London
31 August 1999