Bunzl plc, the international distribution and outsourcing group, today announces its interim management statement for the period since 31 December 2012.
Revenue and operating margins have been consistent with expectations at the time of the annual results announcement in February. At constant exchange rates, group revenue in the first quarter has increased 10% compared to the same period last year due to underlying revenue growth of about 2%, with all of the business areas showing growth, and the positive impact from acquisitions.
Acquisition growth continues to be a key part of the company strategy and today the company is announcing its third acquisition this year with the purchase of Michael Davies and Associates Limited. Trading as MDA, the business is based in Blackburn in the UK and is engaged in the procurement and fulfilment of promotional products and marketing point of sale materials for a variety of customers, principally in the food and drinks industries. Revenue in the year ended 31 December 2012 was £22 million.
There has been no significant change in Bunzl’s financial position during the period and the group continues to have substantial funding headroom available. Bunzl’s strong cash flow and balance sheet, together with a promising acquisition pipeline, should continue to give the group opportunities to consolidate the markets in which it operates and deliver further growth.
Commenting on the acquisition, Michael Roney, Chief Executive of Bunzl, said: “The acquisition of MDA is an exciting development for us as it extends our service offering in the retail and hospitality sectors in the UK. We are delighted to welcome their employees to the Group.”