Last checked at 23 Jun 2009 07:00
RNS Number : 3084U
Bunzl PLC
23 June 2009
23 June 2009
BUNZL PRE CLOSE STATEMENT
Bunzl plc, the international distribution and outsourcing Group, is updating the market today relating to the six months ending 30 June 2009 prior to entering the close period.
The Company announces that:
·; Group revenue growth of approximately 17%, with underlying revenue marginally down, is consistent with the level of growth reported in the recent Interim Management Statement allowing for the impact of subsequent movements in exchange rates. Despite a more difficult first quarter, overall trading is in line with full year expectations.
·; As also indicated in the Interim Management Statement, the more challenging economic environment has put some pressure on margins. This is particularly the case in the UK & Ireland and the Rest of the World due to reductions in revenue and the transactional effect of weaker sterling and the Australian dollar. The impact on margins in the other business areas is minimal.
·; In North America new business wins and additional business with current customers have enabled the business to grow underlying revenue at a similar level to the previous year.
·; Underlying revenue in the UK & Ireland is below last year, principally due to weaker performance of the less resilient market sectors. Appropriate cost reduction measures have been implemented. The acquisitions of W. K. Thomas and Industrial Supplies, announced in March, are integrating well.
·; In Continental Europe revenue is ahead of last year although underlying revenue softened due to the weaker economic environment throughout the region.
·; The Group remains highly cash generative and expects operating cash flow for the half year to be at a similar level to the comparable period last year.
New business wins and the results of cost reduction initiatives across the world, the favourable impact of currency translation and the Company's strong financial position should enable the Group to develop positively.
Enquiries:
| Bunzl plc Michael Roney, Chief Executive Brian May, Finance Director Tel: +44 (0)20 7725 5000 | Tulchan David Allchurch Stephen Malthouse Tel: +44 (0)20 7353 4200 |
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