Bunzl H1 profit up, sees no material hit from Brexit

Distribution and outsourcing group Bunzl reported a rise in first-half profit as revenue grew and the company lifted its interim dividend following a number of acquisitions.

For the six months to the end of June, pre-tax profit increased to £155.6m from £147.1m on revenue of £3.45bn, up from £3.14bn thanks to favourable currency moves. Adjusted pre-tax profit rose to £210.6m from £187m.

Chief executive Frank van Zanten said: “We continue to have a strong balance sheet and an active pipeline of opportunities for further acquisitions and expect to complete more transactions during the rest of the year. The board is confident that Bunzl's well positioned businesses will develop further and that the prospects for the group are positive."

Also on Tuesday, the company announced that it has completed two further acquisitions in Canada and has entered into an agreement to acquire a business in Hungary.

Including the three acquisitions announced on Tuesday, one of which is expected to be completed at the end of September, Bunzl has acquired eight businesses so far this year. The committed spend in respect of these acquisitions is £101m, adding annualised revenue of over £100m.

Bunzl said it was difficult to give a firm view as to the probable impact of the UK’s vote to leave the European Union, but pointed out that currently more than 85% of its business is based outside the UK and, as a result, it does not expect the impact on the group's overall operations to be significant.