Bunzl first quarter revenue rises on acquisitions

Business supplies distributor Bunzl said trading in the first quarter was in line with expectations put forward at the company's annual results announcement in February.

The FTSE 100 company posted a 6% increase in revenue on an annualised basis, driven by underlying growth of approximately 2% and the positive impact of recent acquisitions in Canada and the Netherlands.

The group completed the takeover of Emballages Maska and Prescott in Canada and Janssen Packaging in the Netherlands.

In a statement released on Wednesday, Bunzl said it had also reached an agreement to acquire Turkey-based personal protection equipment distributor İstanbul Ticaret Hirdavat Sanayi AS and one of its subsidiaries.

Analysts at Shore Capital said that while trading in the first quarter had fallen slightly short of their expectations, the company was well placed to grow in the remainder of the year.

“Strong cash generation is indicated to continue on what we view as a continuing strong financial position,” the brokerage said in a note, adding it retained its current forecasts on the stock.

Bunzl shares were down 1.15% to 1,888.00p at 08:45 on Wednesday.