Bunzl
Strong cash generation and merger activity boost hopes for half-year results
Expect international distribution and outsourcing group Bunzl to unveil half-year earnings growth of 6.8pc of £232.6m.
Earnings per share of 45.2p are expected for the first six months of the year. In a preclose trading statement at the end of June, the company said it expected organic revenue growth to be similar to last year, when underlying growth was flat.
Ahead of the half-year results, analysts at Deutsche Bank reiterated their “buy” rating, thanks to its strong cash generation and the ability to deploy capital into low-rise mergers and acquisitions.
This year Bunzl has acquired five companies with a committed spend of around £80m – lower than last year when it splashed out £210m on 10 businesses. Deutsche Bank described Bunzl’s merger activity so far this year as “below average” and as such expects a better second half.