Bunzl interims get a lift from weak pound

Distribution and outsourcing group Bunzl said the weak pound helped power interim pre-tax profits to £181.9m, a rise of 17%.

With more than 85% of the group's revenue generated outside the UK, the weakening of sterling against most currencies increased revenue, profits and earnings by approximately 12%, Bunzl said.

Revenue rose 20% to £4.1bn due to the positive impact of acquisitions together with an improved level of organic growth, Bunzl said.

"Consistent with the trends seen during the fourth quarter of 2016, organic revenue continued to increase in the first half of 2017 and was up 3.7% compared to the same period last year mainly as a result of the additional business won in North America towards the end of 2016," the company said.

The interim dividend was increased to 14p a share from 13p.

Bunzl also unveiled a new acquisition in China, with the purchase of HSESF and its associated companies which are principally engaged in the sale of a variety of personal protection equipment. The aggregate revenue of the businesses acquired was £24m in 2016.

"HSESF, together with LSH, the personal protection equipment distribution business in Singapore that we acquired earlier in the year, have enabled us to establish a presence in the safety sector in the region," said chief executive Frank van Zanten.