Bunzl posts middling half-year update

Shares in FTSE 100 outsourcer Bunzl (LON:BNZL) advanced 0.25% to 2,038p (as of 13:20 BST) as pre-tax profits for the six months ended 30th June climbed by 1.6%. Revenues for the period were up by 4.3% with a very modest improvement in gross margins.

CEO Frank van Zanten commented: “Against the background of slowing macroeconomic and market conditions across the countries and sectors in which we operate, Bunzl has produced a resilient operating performance with high cash conversion and an increased dividend.

“Looking forward, the Group’s expectations for 2019 remain unchanged. Despite continuing economic uncertainties, the Board believes that the combination of our strong competitive position, diversified and resilient businesses and ability to consolidate our fragmented markets will lead to further progress. We have a strong balance sheet and are in active discussions with a number of acquisition targets which we anticipate will result in additional deals during the remainder of the year“.