Trading Statement

RNS Number : 4201K

Bunzl PLC

25 June 2014

 



25 June 2014

BUNZL PRE CLOSE STATEMENT

Bunzl plc, the international distribution and outsourcing Group, is updating the market today relating to the six months ending 30 June 2014 prior to entering its close period.

Overall trading is consistent with expectations at the time of the Interim Management Statement in April.  At constant exchange rates Group revenue growth for the period is expected to be approximately 6%, due to underlying revenue growth of about 2% and the positive impact of acquisitions.  All of the business areas are expected to show positive underlying revenue growth and improved operating margins for the period. As previously announced, the Company's reported results at actual exchange rates will be negatively affected by foreign exchange translation.

Acquisitions are a key component of the Group's growth strategy.  Including the two acquisitions announced today of Allshoes and JPLUS, the year to date acquisition spend is approximately £95 million.  The current environment for acquisitions remains positive with a promising pipeline of opportunities.

The Group has recently refinanced some of its debt facilities by raising US$300 million in the US private placement market with maturities ranging from seven to 12 years.  US$118 million was drawn in May with US$112 million due to be drawn in September and the balance in December 2014.  The Group continues to have substantial funding headroom available.

Bunzl's strong cash flow, balance sheet and promising acquisition opportunities should enable the Group to consolidate further the markets in which it competes and increase shareholder value.

Enquiries:

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

Tulchan David Allchurch Stephen Malthouse Tel: [phone]

 

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