17th Dec 2019 08:18
(Alliance News) - Distribution firm Bunzl PLC on Tuesday guided for revenue growth, though continued weak economic conditions are weighing.
Bunzl sees revenue for 2019 rising by 2% to 3% at actual exchange rates, with revenue at constant rates rising by 1%. Revenue in 2018 was GBP9.08 billion, 5.8% higher at actual rates and up 9% at constant rates.
Underlying revenue, London-based Bunzl noted, is set to be flat on 2018.
"The group's expectations for the year 2019 remain unchanged with overall trading consistent with the slowing underlying revenue growth indicated in previous announcements this year due to the impact of the continued mixed macroeconomic and market conditions across the countries and sectors in which the Group operates," said Bunzl.
In October, Bunzl reported a 1% decline in underlying revenue for the third quarter of the year, with actual currency growth at 4%. The firm said economic conditions remained mixed in many of its markets.
The company also announced an acquisition on Tuesday, of Fire Rescue Safety Australia, which distributes specialist fire safety and personal protection equipment. Based in Perth, it has annual revenue of around GBP19 million.
Bunzl didn't provide the purchase price, bust said so far in 2019 it has made around GBP120 million of acquisitions. It has an "active" target pipeline with discussions ongoing.
Chief Executive Frank van Zanten commented: "FRSA has a market-leading position in the provision of emergency response solutions in Australia and further expands and develops the scope of our operations there. We are delighted to welcome their employees to the group."
Bunzl shares were 1.4% lower in early trade in London on Tuesday at a price of 2,071.00 pence each.
By George Collard; [email protected]
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