Bunzl sees 7% jump in half year revenues; acquires 3 more businesses

International distribution and outsourcing group Bunzl said revenue for the half year was expected to have increased by 7% at constant exchange rates due to the improved underlying growth of between 3% and 4% and a similar impact from acquisitions.

The company also announced it had purchased three further businesses in Spain and Canada for an undisclosed sum. It added that it expected to make further acquisitions this year.

"Overall trading is consistent with expectations at the time of the first quarter trading statement in April. In addition, currency translation movements are expected to have increased the constant exchange revenue growth by 12%. As previously indicated, the underlying revenue growth is mainly due to the additional business won, albeit at lower margins, in North America towards the end of 2016," Bunzl said in a trading statement.

The Canadian businesses, AMFAS and Western Safety, both based in Vancouver, are distributors of commercial and industrial first aid and safety supplies. The businesses, which together have aggregated annualised revenue of CAN $16m also provide safety-related services including training programmes and other workplace safety solutions.

In Spain it has bought Valencia-based Tecnopacking, which distributes industrial and disposable packaging products to end users operating in a variety of different sectors throughout Spain as well as in Portugal. Revenue in 2016 was €38m.

Bunzl has now acquired eight businesses so far this year for a total committed spend of approximately £290m, adding aggregate annualised revenue of £370m.