Shares in Bunzl PLC (LSE:BNZL) rose 1.6% to 2,360p after a trading update revealed that trading had not worsened since its profit warning in April, though some analysts remained sceptical.
Chief executive Frank van Zanten said, "Actions are underway to improve performance in the group, particularly in our largest business in North America and in Continental Europe, and we anticipate improvement in the second half of the year."
Analyst Jacob Armstrong at Stifel noted that underlying trading trends remained "subdued" and bemoaned that the trading update "does not give any details on the progress in North America and we remain watchful on the execution improvements".
At Shore Capital, Robin Speakman noted that cash generation had continued, with the FTSE 100-listed distributor of capital goods focusing its asset allocation on keeping a lid on debt.
"Bunzl has only completed two small acquisitions year to date, with a third in Brazil slated for later this year," he said.
"We expect activity to continue at a low level for now, asset allocation focusing upon debt reduction, organic investment and dividends. So, no change to underlying forecasts at this juncture."
In the weeks leading up to the update, the shares had traded at their lowest since early 2021, following April's profit warning that revealed a "significant" fall in profit in the first quarter, leading to guidance for the year being cut and the share buyback programme ditched.
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