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Bunzl plc, the international distribution and outsourcing Group, is updating the market today relating to the year ending 31 December 2017 prior to entering its close period.
Overall trading is consistent with expectations at the time of the third quarter trading statement in October. Group revenue for the year is expected to have increased by approximately 15% at actual exchange rates. At constant exchange rates revenue is expected to have risen by between 9% and 10% due to similar levels of growth from both organic revenue and the impact of acquisitions. The growth in organic revenue is principally due to the previously announced additional business won, albeit at lower margins, in North America towards the end of 2016.
The ability to consolidate the Company’s fragmented markets through acquisitions is an important part of the ongoing strategy of Bunzl and the Company also today announces the purchase of Lightning Packaging in the UK. The business is principally engaged in the distribution of industrial packaging products to a variety of end user customers operating in a number of market sectors throughout the UK. Revenue in the year ended March 2017 was £14 million.
This year has seen a record level of acquisition spend for Bunzl of approximately £600 million which significantly exceeds the previous high of £327 million achieved in 2015. The pipeline for acquisitions remains active.
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