Interim results for six months ended 30 June 2008

26 Aug 2008

Bunzl plc, the international distribution and outsourcing Group, today announces its results for the six months ended 30 June 2008.

• Revenue up 14% to £1,964.2 million (constant currency +10%)
• Operating profit before intangible amortisation up 15% to £128.6 million (constant currency +10%)
• Operating profit up 11% to £111.6 million (constant currency +7%)
• Profit before tax and intangible amortisation up 10% to £110.8 million (constant currency +5%)
• Profit before tax up 5% to £93.8 million (constant currency +1%)
• Earnings per share up 8% to 19.8p (constant currency +3%)
• Adjusted earnings per share* up 14% to 23.7p (constant currency +9%)
• Interim dividend up 11% to 6.45p

Other highlights include:

• Continued high return on operating capital and strong cash flow
• £118 million spent on acquisitions year to date
• Entry into promising Brazilian market
• Acquisitions announced today strengthen position in fragmented Spanish market

* Before intangible amortisation

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

“Overall trading was strong despite increasingly difficult economic conditions as the year has progressed, particularly in the UK and the eurozone.  These results again demonstrate Bunzl’s strength across its international markets and its ability to take advantage of growth opportunities.”

Michael Roney, Chief Executive of Bunzl, said:

“I am pleased to report a strong first half operating performance due to a combination of organic growth and good performance from acquisitions.  Furthermore, a significant level of acquisition spend in both existing and new geographies positions us well for the future.”

Bunzl also today announces that it has completed two further acquisitions in Spain.

The Company has recently purchased Marca Protección Laboral SL from Leandro Martín and Maria Concepción Velázquez and Marvel Protección Laboral SL from Maria Concepción Velázquez.  Based in Cartagena, Marca and Marvel supply personal protection equipment, principally workwear and clothing, to redistributors throughout Spain.  The aggregate revenue in the year ended 31 December 2007 was €21.2 million and the gross assets acquired are estimated to be €12.3 million.

The Company has also acquired the business of Higiene en Colectividades SA from a private company controlled by José Martinez.  Based in Barcelona, the business, which is known as Hicosa, is principally engaged in the distribution of cleaning and hygiene products to a variety of customers in Spain.  Revenue in the year ended 31 December 2007 was €6.4million and the gross assets acquired are estimated to be €2.2 million.

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

“These acquisitions represent a significant increase in the size of our business in Spain and strengthen our position in this market which we entered in 2007.  Marca extends our operations into personal protection equipment for the first time while Hicosa complements our existing cleaning and hygiene business.  These businesses have a reputation for providing excellent service and innovative products and we are pleased to welcome them to the Group.”

Download the Interim Results for Six Months Ended 30 June 2008 (PDF 230KB).

Note:
A webcast of today's presentation to analysts will be available here by 3:00 pm today.

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