Bunzl Sees Fiscal Year Trading In Line With Views, Revenue Growth 2%

Bunzl PLC (BNZL.LN), an international distribution and outsourcing Group, said Tuesday that overall, trading is in line with full year expectations with Group revenue growth of 2%.

MAIN FACTS:

-Group operating margin has improved compared to the same period in 2009 as a result of increases in the U.K. & Ireland and the Rest of the World, largely due to the favorable impact of cost reduction initiatives previously taken and the absence of a negative transaction impact from foreign exchange which particularly affected these business areas in the first half of last year.

-This improvement, combined with the increase in revenue, has led to an increase in overall Group profitability.

-In North America the strong underlying revenue growth of the first quarter has continued, led principally by additional business with existing customers.

-Although revenue in the U.K. & Ireland in the first half is below the same period last year due to the persisting difficult economic conditions, the improvement in operating margin has resulted in an increase in profits.

-In Continental Europe trading is ahead of the first half of last year due to the impact of recent acquisitions.

-The Rest of the World has shown excellent growth due to the favorable impact of currency translation, strong underlying growth in Brazil and a significant improvement in operating margin in Australasia.

-Acquisitions remain a key component of Bunzl's strategy.

-Shares closed Monday at 746.5 pence.

-By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [e-mail]