Bunzl targets companies for takeover
Distribution and outsourcing group Bunzl said yesterday it traded in line with expectations in the third quarter and is in talks with possible acquisition targets.
The firm said in a trading update sales rose eight per cent in the three months to the end of September, boosted by favourable foreign exchange movements.
Although core sales fell one per cent, that was an improvement on growth in the first half, due to a better performance in continental Europe. Bunzl’s profit margins also improved, reflecting cost reduction initiatives and foreign exchange benefits.
“While acquisitions remain a key component of Bunzl’s strategy and discussions continue with a number of potential targets, the difference in the company’s price expectations and those of prospective sellers continues to be an impediment to finalising transactions,” it said. Panmure Gordon analyst Paul Jones was impressed with the update, saying he expected “more of the same”.