Bunzl expectations unchanged amid patchy trading conditions
Bunzl said its expectations for the year were unchanged as the distribution and business services group feels the effects of mixed macroeconomic and market conditions.
The FTSE 100 company said it expected revenue for the year to the end of December to rise by 2-3% or 1% based on constant exchange rates. Stripping out acquisitions and disposals revenue will be broadly flat, it said in a trading update.
Bunzl makes about 90% of its money outside the UK with operations spanning the Americas, Asia and Europe. Its business has been affected by slowing economies in Brazil, Mexico and Germany and in the UK it has been hit by the slowdown in manufacturing and construction and problems at restaurant chains caused by a glut of casual dining outlets.
Bunzl also said it had bought Fire Rescue Safety Australia (FRSA), which sells safety and personal protection equipment to Australian state emergency and defence services and mining companies. The Perth-based business operates from five locations in Australia and has annual revenue of about £19m.
Chief executive Frank van Zanten said: "FRSA has a market leading position in the provision of emergency response solutions in Australia and further expands and develops the scope of our operations there. We are delighted to welcome their employees to the group."
Bunzl said growth through acquisitions remained an important part of its strategy and that the FRSA deal was its third this year with spending of £120m. The company said it was talking to a number of further potential acquisition targets.