Bunzl sees revenue growth driven by acquisitions

Distribution company Bunzl said group revenue for the half year is forecast to increase by 9% at actual exchange rates and 6% at constant rates, largely due to the impact of acquisitions.

“Consistent with the trends seen during the second half of 2015, underlying revenue in the first half of 2016 is expected to be at a similar level to the prior year,” Bunzl said.

It added that it had bought two further businesses in the UK and Belgium. The first was The Classic Printed Bag Company, based in Christchurch, England which makes bespoke retail packaging for non-food retailers in the UK, Hong Kong and elsewhere in Europe. Revenue in 2015 was £7m.

The second was Polaris Chemicals SPRL, a distributor of cleaning and hygiene supplies based near Brussels. Revenue in 2015 was £3m.

Bunzl has now acquired five businesses so far this year with a total committed spend of approximately £80m.

"With an active acquisition pipeline and ongoing discussions taking place, the company expects to complete further acquisitions in the second half of the year," Bunzl said.