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The Markets
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Business & education services

Bunzl sees first half revenue rising 7% boosted by acquisitions

Underlying growth rose 3% to 4% led by new business won in North America

Bunzl PLC’s (LON:BNZL) share price moved higher as revenue in the first half rose 7% at constant exchange rates, boosted by underlying growth and acquisitions.

In a trading statement, the distribution and outsourcing group said underlying growth was 3% to 4%, led by additional business won, albeit at lower margins, in North America towards the end of 2016.

Bunzl has purchased three further businesses in Spain and Canada, taking its number of acquisitions to eight so far this year for a total price tag of £290mln, adding aggregate annualised revenue of £370mln.

"I am particularly pleased to see that the level of acquisition activity has picked up this year with the purchase of a number of high quality businesses which have allowed us to expand the group further.

“With a promising pipeline of additional opportunities, I would expect us to complete further acquisitions as the year progresses," said chief executive Frank van Zanten.

Bunzl shares rose 4.7% to 2,417p.

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