Bunzl expects revenue for the year to increase by up to 15%

Distribution and outsourcing company Bunzl expects revenue to increase for the year thanks to several acquisitions and after slow growth in the first three quarters.

Revenue for the year ended 31 December, is expected to rise between 14% and 15% at actual rates, while at constant currency it is expected to nudge up between 4% and 5%, with the operating margin at the same level as last year.

Underlying revenue did not increase during the first three quarters, but there had been some pick-up in the fourth due to recent business wins and as the price of plastic resin based products started to subside.

Revenue was principally driven by 13 acquisitions during the year for a total of about £150m, which added revenue of about £165m, and with several more acquisitions in the pipeline.

Some of its acquisitions include two Berlin-based healthcare products companies, Mommsen Handelsgesellschaft and Inkozell Zellstoff-Vertrieb, which were bought in May, while in August it bought two Canadian firms, Plus II Sanitation Supplies and Apex Sanitation Products, and Budapest-based foodservice company Silwell.

In November it also bought two French firms Priorisk and GM Equipement, and Copenhagen-based cleaning product distributor Sæbe Compagniet.

The FTSE 100 company said that growth through acquisitions and the ability to consolidate its fragmented markets is an important part of its ongoing strategy.