Distribution and outsourcing group Bunzl has reported a strong start to 2011, with first quarter revenues up 12 per cent on the same period year-on-year.
The company, which provides retailers with not-for-sale goods such as packaging and display material, has been aided by a plethora of acquisitions over the last year.
Bunzl’s list of acquisitions in 2010 included Clean Care, Weita, Silco and Juba, which increased its presence in Denmark, Switzerland, Israel and Spain respectively, while Cannon Consumables in the UK and Omega in Australia were acquired last month and are said to be integrating well.
Underlying revenue growth for Q1 was 2.5 per cent, which the group attributes to “continuing good growth” in a number of its key markets, although it acknowledges that there has been a small overall negative exchange rate impact.
Q1 group operating margin also increased year-on-year as a result of an improvement in mix and the additional trading days in the period compared to 2009.
More good progress is expected in the months ahead, with Bunzl eying further takeover opportunities.
Today’s statement said: “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 pipeline of potential acquisition targets, should continue to give the group opportunities to consolidate the markets in which it operates.”