24th Aug 2015 06:16
LONDON (Alliance News) - Distribution and outsourcing company Bunzl PLC on Monday said its pretax profit rose in the first half on the back of better revenue and said it has made four more acquisitions.
The FTSE 100-listed company, which distributes items such as plastic bags, latex gloves, safety goggles and cleaning supplies to retail and food industry clients, said its pretax profit for the six months to the end of June was up to GBP147.1 million from GBP132.3 million a year earlier, an 11% rise, on the back of a 7% rise in revenue to GBP3.14 billion from GBP2.94 billion.
The group said its group operating margin at constant exchange rates was flat year-on-year, with stronger performances in Continental Europe and the UK and Ireland and stable margins in North America, but declining margins in its Rest of the World operations due to challenging market conditions and some foreign exchange translation hits taken in some countries.
The group said it will pay an interim dividend of 11.75 pence per share, up from 11.00 pence per share a year earlier.
Bunzl, which derives much of its growth from bolt-on acquisitions, said it has spent GBP241 million on 14 acquisitions in the year to date, including the four further deals it announced in a separate statement on Monday.
The group has acquired Meier Verpackungen GmbH in Austria, Steiner Industries Inc in Chicago, Cater Plus Pty Ltd in Adelaide, and Delta Hospitality Pty Ltd in Brisbane.
"Bunzl has produced another good set of results due to a combination of organic revenue growth, the impact of recent acquisition activity and the continued focus on improving the efficiency of our operations. Our consistent and proven strategy has once again delivered a successful period of growth for the group," said Chief Executive Michael Roney.
"There has been an excellent level of acquisition activity so far this year. With a promising pipeline of opportunities and ongoing discussions taking place, we expect to complete a number of additional acquisitions during the rest of the year," Roney added.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Bunzl