Bunzl PLC (LON:BNZL) has posted a 13% jump in full-year pre-tax profit, boosted by recent acquisitions and a weaker pound, and rewarded shareholders with a 10% hike in the interim dividend.
The FTSE 100-listed distribution and outsourcing group said its adjusted pre-tax profit increased to £542.6mln for the year to 31 December 2017, up from £478.2mln a year earlier, as revenue rose by 16% to £8.6bn.
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The group said organic revenue growth was up 4.3% compared to the previous year to its highest level since 2006, mainly due to the additional business won in North America towards the end of 2016.
Bunzl said revenue in North America rose by 10% to £5.1bn due to the impact of higher organic growth and the effect of acquisitions, while revenue in the UK and Ireland was up 9% to £1.2bn.
It added that revenue in Continental Europe increased by 12% to £1.6bn and Rest of World revenues were 5% higher at £718.6m.
Weakening in pound a positive impact
Bunzl said the weakening of the pound against most currencies in 2016 had a significant positive impact on its reported results in 2017, as 87% of its revenue is generated outside of the UK.
Frank van Zanten, Bunzl’s chief executive said: "2017 was a record year for committed acquisition spend, which at £616mln significantly exceeded the previous high of £327mln achieved in 2015, and the pipeline of potential acquisitions for this year remains promising.”
He added: "Looking forward, we believe that the prospects of the group are positive due to our strong market position and our well established and successful strategy to grow both organically and by further consolidating the fragmented markets in which we compete."
The group is to pay an interim dividend of 46p, up 10% on last year’s 42p payout.
In early morning trading, Bunzl shares were up 0.6% at 2,022p.