Norwegian company Enor is the latest to be swept up.
Bunzl announces new acquisition following positive results
- The distribution and services group has announced its first acquisition in Norway as it has agreed to buy Enor
- The group’s solid track record of dividend growth continues with a 9% increase in the interim dividend
- We continue to recommend Bunzl as a ‘buy’ for a lower risk balanced portfolio
Bunzl has delivered a solid set of half yearly results with double digit increases in revenue, adjusted operating profit and adjusted earnings per share.
The FTSE 100 group gets the majority of its profits from abroad with around 77% of profit coming from North America and Europe; thus currency movements can influence and the group stated that the strengthening of sterling against the US dollar had impacted negatively.
The outsourcing firm reported an 8% increase in profit to £197.3 million with organic revenue growth increasing to 5.2%. These solid numbers placed the group in a strong position to satisfy investors continuing its good record of dividend growth with a 9% increase in the interim dividend to 15.2 pence.
While the groups operating margin was unchanged at 6.6%, the market appeared satisfied with the numbers, with the shares up 1.5% in early morning trading.
Four acquisitions have been announced to date, including one announced today as the group has purchased Norwegian company Enor.
Looking forward to the rest of the year, the group are positive that the company will continue to develop the business and build shareholder value through a combination of organic growth and further acquisitions despite mixed macroeconomic and market conditions.
Bunzl possesses a strong market position and a good reputation of growth through acquisitions, considering its positive outlook and solid track record; we recommend the shares a long-term ‘buy’ for a lower risk balanced portfolio.
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