Trading Statement

RNS Number : 0109E

Bunzl PLC

14 December 2009

 



14 December 2009  

BUNZL PRE CLOSE STATEMENT

Bunzl plc, the international distribution and outsourcing Group, is updating the market today prior to entering the close period relating to the year ending 31 December 2009.

The Company announces that:

·       Overall trading is consistent with the recent Interim Management Statement and is in line with full year expectations. Group revenue for the year has increased 11% compared to 2008 due to the positive impact of exchange. At constant exchange rates, underlying revenue for the Group in the second half is approximately 1% below the same period in the prior year which is a slight improvement in the growth rate compared to the first half of 2009. 

 

·       As noted in the Interim Management Statement, the overall operating margin has improved compared to the first half largely due to the favourable impact of cost reduction initiatives already taken and a reduced negative transaction impact from foreign exchange, particularly in the UK & Ireland and Australasia.

 

·       In North America the underlying revenue growth in the second half is slightly stronger than the first half growth rate of 2% due to new customer wins and additional business with existing accounts.

 

·       Although underlying revenue in the UK & Ireland in the second half continues to be below the comparable period last year due to the effect of the weak economy on the less resilient market sectors, the operating margin has improved significantly compared to the first half of the year.

 

·       In Continental Europe underlying revenue in the second half is broadly comparable to the same period last year with performance having improved since the first half due to stronger revenues in France aided by sales of cleaning and safety products related to H1N1 prevention.

 

·       Underlying revenue in the Rest of the World in the second half is below the same period in 2008 although the operating margin has improved significantly compared to the first half of the year.

Bunzl’s geographically diversified and market leading businesses, combined with its strong cash flow and balance sheet, position the Group well and should enable it to take advantage of appropriate opportunities to develop further.

 

 

Enquiries:

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

Tulchan David Allchurch Stephen Malthouse Tel: [phone]

 

END

 

 

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