Preliminary results for year ended 31 December 2007 and acquisitions in Brazil and Europe

25 Feb 2008

Bunzl plc, the international distribution and outsourcing Group, today announces its annual results for the year ended 31 December 2007. The results were:

• Revenue £3,581.9 million (2006: £3,333.2 million), up 12% at constant exchange rates
• Operating profit before intangible amortisation £242.9 million (2006: £226.3 million), up 12% at constant exchange rates
• Operating profit £218.5 million (2006: £206.4 million), up 11% at constant exchange rates
• Profit before tax and intangible amortisation £215.5 million (2006: £209.6 million), up 8% at constant exchange rates
• Profit before tax £191.1 million (2006: £189.7 million), up 6% at constant exchange rates
• Adjusted earnings per share* 45.1p (2006: 41.7p), up 13% at constant exchange rates
• Earnings per share 39.8p (2006: 37.8p), up 10% at constant exchange rates
• Dividend for the year up 10% to 18.7p

Other highlights include:

• Improved operating margin* of 6.9% at constant exchange rates excluding acquisitions
• £197 million spent on acquisitions
• Key acquisitions of King Benelux, Irish Merchants and Coffee Point
• Entry into Spain and Belgium
• Acquisition into the large and rapidly growing Brazilian market announced today

* before intangible amortisation

Commenting on today's results, Anthony Habgood, Chairman of Bunzl, said:

"These results demonstrate Bunzl's strength in its markets and our ability to take advantage of growth opportunities both in existing and new geographies. They position us well for the future."

Michael Roney, Chief Executive of Bunzl, said:

"Bunzl had a successful 2007 due to organic growth and strong performance from acquisitions and we are excited about recent developments, especially the entry into the promising Brazilian market. The continued strengthening of the Group gives us confidence that our business will continue to grow successfully."

Bunzl also today announces that it has completed three further acquisitions.

The Company has recently acquired Prot Cap Artigos para Proteçáo Industrial Ltda and its subsidiaries from Everaldo Baldin and Leonardo Baldin. Based in Sáo Paulo with 7 branches throughout Brazil, Prot Cap is a leading national supplier of personal protection equipment to the industrial, processor, construction, retail and mining sectors. Revenue in the year ended December 2007 was R$118 million (£35 million) and gross assets acquired are estimated to be R$41 million (£12 million).

At the end of January Bunzl acquired Günter Guest Supplies GmbH & Co KG from Dietmar Lillig. The business, which is based in Bremen, Germany, supplies guest amenity products to hotels throughout Europe and had revenue of €9 million in the year ended December 2007. Gross assets acquired are estimated to be €4 million.

Finally, in December the Company purchased Rafferty Hospitality Products Limited from Jim and Mary Rafferty. Based in Newry, Northern Ireland, Rafferty is engaged in the supply of guest amenity products to hotels throughout Ireland. Revenue in the year ended October 2007 was £9 million and gross assets acquired are estimated to be £6 million.

Commenting on these acquisitions, Michael Roney, Chief Executive of Bunzl, said:

"The acquisition of Prot Cap is an exciting development for us.It is in line with our strategy of expanding into new geographic areas and represents our first move into the large and rapidly growing Brazilian market where we see opportunities to develop further.It has an excellent reputation for both quality and service and we are delighted to welcome the management and staff to the Group.

Together, the businesses of Rafferty and Günter Guest Supplies will allow us to expand further our offering of guest amenity and other related products into the hotel sector. They complement and strengthen our existing business in this market and are already integrating well.We also welcome them to Bunzl."

Download the Preliminary Results for Year Ended 31 December 2007 (PDF 200KB)

Note:
A webcast of today's presentation to analysts will be available here from 1.30pm today

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