LONDON (dpa-AFX) - Distribution and outsourcing group Bunzl Plc. (BZLFY.PK, BNZL.L) Wednesday said overall trading is consistent with expectations for the six months ending June 30, and all business areas are expected to show positive underlying revenue growth and improved operating margins.
Separately, the company said it made two more acquisitions in the Netherlands and Brazil.
In an update to the market relating to the six months ending June 30, the distributor of non-food products, said that at constant exchange rates, group revenue growth for the period is expected to be about 6 percent, due to underlying revenue growth of about 2 percent and the positive impact of acquisitions.
As stated previously, the company's results at actual exchange rates could be hurt by foreign exchange translation.
Bunzl noted that acquisitions are a key component of the Group's growth strategy. Including the two acquisitions announced today of Allshoes and JPLUS, the year-to-date acquisition spend is around 95 million pounds. According to the company, the current environment for acquisitions remains positive with a promising pipeline of opportunities.
The group recently refinanced some of its debt facilities by raising $300 million in the US private placement market with maturities ranging from seven to 12 years . And, $118 million was drawn in May with $112 million due to be drawn in September and the balance in December 2014. The company continues to have substantial funding headroom available.
In a separate statement, Bunzl said it bought Allshoes Benelux BV in the Netherlands. Allshoes is a distributor of branded and own brand safety and work shoes to wholesalers and retailers, in the Netherlands and Belgium. Its revenue in the year ended December 31, 2013 was 19.9 million euros.
Bunzl has also acquired JPLUS Comércio e Distribuição Ltda in Brazil. JPLUS is engaged in the distribution of cleaning and hygiene supplies and disposable products to end user customers, particularly in the contract cleaning and healthcare sectors. Its revenue in the year ended December 31, 2013 was R$39.3 million or about 11 million pounds.
BNZL.L closed at 1,630.00 pence on Tuesday.
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