Bunzl revenues rise 6% in 2014 as company eyes acquisitions
Distribution and outsourcing group Bunzl said revenues are expected to rise around 6% over 2014 at constant exchange rates, and said it sees further “opportunities” to invest and grow.
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The company said this reflected underlying growth of 2.5%, with increases across all areas of the business, as well as the positive impact from acquisitions.
However, as analyst Robin Speakman at Shore Capital pointed out, this represents a slight slowdown from the 3% growth registered in the third quarter, “most likely in Continental Europe and the UK, perhaps a slightly weaker trend in the UK also”.
The company also announced that it has acquired Canada’s Acme Supplies, a cleaning and hygiene supplies business based in Vancouver Island.
Bunzl said that acquisitions are a “key component” to its growth strategy and that the environment for deals remains positive “with a promising pipeline of opportunities”.
“This, together with Bunzl's strong cash flow and balance sheet, should enable the group to consolidate further the markets in which it competes and increase shareholder value,” the company said.
Bunzl’s shares were down 0.7% at 1,782p by 08:10.