Investors warmed by Bunzl’s first-half performance


Foodservice supplies giant Bunzl yesterday told investors it would post sales growth of 11% for the first six months of the year.

The London-listed company took the step of updating the market in relation to the six months to 30 June prior to entering its close period.

Bunzl, which owns Lockhart Catering Equipment among a host of other foodservice and distribution businesses, said overall trading is consistent with expectations at the time of its interim management statement in April.

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At constant exchange rates, group revenue growth for the period is expected to be approximately 11% due to underlying revenue growth of about 2% and the positive impact of acquisitions.

Typically, the amount of revenue generated from Bunzl’s ‘foodservice’ operations — which includes catering equipment and tableware — is around 30% of its total.

Group operating margin for the period is expected to be at the same level as the first half of 2012.

As previously indicated, the results will be impacted by a higher net finance cost resulting from increased acquisition spend, additional longer term fixed rate borrowings and the introduction of the revised accounting standard IAS19.

The reported group results for the first half are expected to have a positive currency exchange translation impact of between 1% and 2%.

Bunzl said acquisitions remain a key component of its growth strategy and that it has a “promising pipeline” of opportunities.

So far this year it has already completed four acquisitions with annualised revenue of more than £150m.

Tags : businesscatering equipmentfinancial resultsProducts
Andrew Seymour

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