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Positive Points: The company has made six acquisitions so far this year, spending a total £77 million to add annual revenues of £157 million. Acquisitions continue to provide a key element of the group's growth strategy. Bunzl reported an improvement in its operating margin, being driven by acquisitions completed in 2011 and the sale of its UK vending business. Both geographical and customer industry diversification are enjoyed.
Negative Points: Bunzl remains sensitive to currency fluctuations. The group generates about half of its profits from North America so there is exposure in movements in the dollar on reported profits. The group boasts a good M&A track-record, but external growth could be considered more risky than organic growth. Acquisitions always bring an element of risk. The group would be exposed to margin risk were it not able to pass on price rises in its products.
Financial Highlights: Profit before tax rose 9% to £151.7 million from £138.8 million the year before. Revenue increased by 7% to £2.61 billion. The board have recommended raising the dividend by 9% to 8.80p from 8.05p.
Half year results: Bunzl targets more acquisitions. International distribution and outsourcing group Bunzl said it would continue to grow in all regions, including challenging markets in Europe, and saw its North America and Rest of the World divisions lead the way in. Chief executive Michael Roney stated that Bunzl "had produced a strong set of results against a backdrop of a challenging marketplace". "Bunzl's strong competitive position and resilient customer sectors, together with opportunities to consolidate further our markets as we expect to complete more acquisitions later this year, should enable the Group to show continued good growth and development,
Bunzl PLC was incorporated in 1940 and listed on the London Stock Exchange in 1957, but its origins date back to 1854 when Moritz Bunzl opened a small haberdashery business in Bratislava, now the capital of Slovakia. Today the company is a leading specialist distribution group supplying a broad range of non-food consumable products that are essential for their customers to operate their businesses but which they do not actually sell. Active in 23 countries, Bunzl's main customer markets include grocery, foodservice, cleaning and safety, non-food retail and healthcare.
Distribution and outsourcing firm Bunzl has acquired MMH Holding, which trades under the name Distrimondo, the Swiss group involved in the distribution of food-service disposables and cleaning and hygiene products. Distrimondo will be acquired from Markus Meier, Daniel Meier and Reto Hofmann for an undisclosed sum. The business, based near Zurich, generated revenues of 17.3m Swiss francs in 2011 and the gross assets acquired were valued at 16m francs by the end of that year. "The acquisition of Distrimondo extends our operations in Switzerland which is a key market that we entered in 2010 with the purchase of Weita," said Chief Executive Michael Roney. "The business has a strong customer base and a leading position in the sectors in which it competes. We are pleased to welcome their employees to Bunzl."
Commenting on the acquisition, Michael Roney, Chief Executive of Bunzl, said: "The acquisition of Distrimondo extends our operations in Switzerland which is a key market that we entered in 2010 with the purchase of Weita. The business has a strong customer base and a leading position in the sectors in which it competes. We are pleased to welcome their employees to Bunzl."
BUNZL EXPANDS IN SWITZERLAND Bunzl plc, the international distribution and outsourcing Group, today announces that it has acquired MMH Holding AG and its subsidiaries from Markus Meier, Daniel Meier and Reto Hofmann. The business, which trades under the name Distrimondo, is based near Zurich and is principally engaged in the distribution of foodservice disposables and cleaning and hygiene products throughout Switzerland. Revenue in the year ended 31 December 2011 was CHF17.3 million and the gross assets acquired are estimated to be CHF16 million.
http://www.investegate.co.uk/Article.aspx?id=201207040822038822G
Positive Points: Bunzl said that overall trading is consistent with expectations at the time of its interim management statement in April. Both geographical and customer industry diversification are enjoyed. Acquisitions continue to provide a key element of the group's growth strategy. "The current environment for acquisitions remains positive with a promising pipeline of opportunities," the company said. Bunzl declared that its strong cash flow and balance sheet should continue to enable the Company to take advantage of appropriate opportunities to consolidate further in the markets in which it competes.
Negative Points: Bunzl remains sensitive to currency fluctuations. The group generates about half of its profits from North America so there is exposure in movements in the dollar on reported profits. The group boasts a good M&A track-record, but external growth could be considered more risky than organic growth. Acquisitions always bring an element of risk. The group would be exposed to margin risk were it not able to pass on price rises in its products.
Financial Highlights: Bunzl expects first half revenue growth of around 7%. Including the acquisition of Service Paper announced today, the company has completed five acquisitions year to date with annualised revenue of approximately £130 million.
Half year trading statement: Bunzl, boosted by acquisitions said it was trading in line with expectations. The company added that it had seen revenue grow by around 7% due to underlying revenue growth of about 4%, as well as the impact of acquisitions and the disposal of its UK vending business in August last year. Bunzl also stated that acquisitions remain an important part of the Group's growth strategy. In a separate announcement, Bunzl reported the acquisition of the business of Service Paper Company in the United States. Seattle-based Service Paper is primarily engaged in the distribution of disposable supplies to the grocery, foodservice, food processor and industrial packaging sectors throughout the Pacific Northwest. Revenue of the acquired business for the year ended December 31, 2011 totalled $61 million and the gross assets purchased are estimated to be $18 million.
Bunzl PLC was incorporated in 1940 and listed on the London Stock Exchange in 1957, but its origins date back to 1854 when Moritz Bunzl opened a small haberdashery business in Bratislava, now the capital of Slovakia. Today the company is a leading specialist distribution group supplying a broad range of non-food consumable products that are essential for their customers to operate their businesses but which they do not actually sell. Active in 23 countries, Bunzl's main customer markets include grocery, foodservice, cleaning and safety, non-food retail and healthcare.
Commenting on the acquisition, Michael Roney, Chief Executive of Bunzl, said: "Service Paper is an excellent business with a reputation for providing high levels of customer service which will complement and expand our existing business in the region. We are delighted to welcome their employees to Bunzl."
BUNZL ACQUIRES SERVICE PAPER IN THE US Bunzl plc, the international distribution and outsourcing Group, today announces that it has acquired the business of Service Paper Company in the United States. Based near Seattle, Service Paper is principally engaged in the distribution of disposable supplies to the grocery, foodservice, food processor and industrial packaging sectors throughout the Pacific Northwest. Revenue of the business acquired for the year ended 31 December 2011 was $61 million and the gross assets purchased are estimated to be $18 million.
http://www.investegate.co.uk/Article.aspx?id=201206270700061892G
BUNZL PRE CLOSE STATEMENT Bunzl plc, the international distribution and outsourcing Group, is updating the market today relating to the six months ending 30 June 2012 prior to entering its close period. Overall trading is consistent with expectations at the time of the Interim Management Statement in April. At constant exchange rates Group revenue growth for the period is expected to be approximately 7% due to underlying revenue growth of about 4% and the impact from acquisitions and the disposal of the UK Vending business in August last year. There has also been a slight improvement in the Group operating margin as a result of the impact of the acquisitions completed in 2011 and the sale of the UK Vending business. Acquisitions remain an important part of the Group's growth strategy. Including the acquisition of Service Paper announced today, the Company has completed five acquisitions year to date with annualised revenue of approximately £130 million. The current environment for acquisitions remains positive with a promising pipeline of opportunities. Bunzl's strong cash flow and balance sheet should continue to enable the Company to take advantage of appropriate opportunities to consolidate further the markets in which it competes and increase shareholder value.
http://www.investegate.co.uk/Article.aspx?id=201206270700061882G
Defensives Prop Up FTSE Another defensive stock favoured by investors on Thursday was Bunzl (BNZL.L), which hit a fresh all-time closing high of 1,062 pence after rising 1.5 percent, with investors encouraged by a bullish note by JPMorgan. "Bunzl's shares have continued to run well ... but we maintain our 'overweight' as we believe the combination of good organic revenue growth, acquisition potential and defensiveness should have appeal in a choppy macro environment," the bank said in a note, raising its 12-month target to 1,130 pence to factor in new acquisitions. Source: http://uk.reuters.com/article/2012/05/03/uk-markets-britain-idUKBRE8420A920120503
Bunzl Completes Three Further Acquisitions Bunzl plc, the international distribution and outsourcing Group, has announced that it has completed three further acquisitions in the United States, Israel and Australia. The Company has acquired FoodHandler Inc. from Barriersafe Solutions International, Inc. Based in Chicago, FoodHandler is a leading supplier of a variety of disposable gloves and other foodhandling products to the foodservice sector throughout the US. Revenue in the year ended 31 December 2011 was $99.4 million and the gross assets acquired are estimated to be $41 million. Bunzl has also acquired the business of Meichaley Zahav Limited in Israel. Based near Tel Aviv, Zahav is a leading distributor of packaging supplies to the foodservice sector throughout Israel. Revenue in the year ended 31 December 2011 was ILS66.3 million and the gross assets acquired are estimated to be ILS31 million. Finally, the Company has purchased the Queensland based redistribution operations of Star Services International Pty Limited in Australia. Based in Brisbane and Cairns, the business is engaged in the supply of foodservice disposable products to wholesalers and redistributors throughout Queensland. Revenue for the year ending 30 June 2012 is expected to be A$12 million and the gross assets acquired are estimated to be A$2.5 million. Commenting on the acquisitions, Michael Roney, Chief Executive of Bunzl, said: “FoodHandler has a leading position in the provision of products relating to food safety and an excellent reputation for quality, innovation and customer service. The business will complement our existing foodservice operations and expands our product offering and import programme in this sector. Zahav is our second acquisition in Israel which is a market we entered in 2010 with the purchase of Silco. It is an excellent business with a strong customer base and significantly increases the size of our business in the region. The acquisition of the Star Services redistribution business is an excellent addition to our existing foodservice supplies operations in Queensland and will allow us to penetrate further into the redistribution sector of this market. We are pleased to welcome all of their employees to Bunzl.” More info: www.bunzl.com http://www.packagingeurope.com/Packaging-Europe-News/46909/Bunzl-completes-three-further-acquisitions.html
Bunzl Sell 23-Apr-12 £199,394.95 Michael J Roney 19,530 @ 1,020.97p Bunzl Sell 23-Apr-12 £109,662.12 Patrick Larmon 10,741 @ 1,020.97p Bunzl Sell 23-Apr-12 £101,912.97 Brian May 9,982 @ 1,020.97p
Shore Capital retained its "buy" stance on Bunzl (BNZL) following a positive investor presentation, with the haulage company noting improving trading conditions in the UK and Ireland. The broker added that the group has ambitions towards acquisitive growth in mainland Europe, while also riding the wave of strong economic development in South America. Shore does not expect to see any large acquisitions, but instead believes Bunzl will focus on bolt-ons to enhance its existing capabilities
Further to the announcement of annual results on 27 February 2012, Bunzl plc announces that as from today the following documents will be available on its website www.bunzl.com on the following link: www.bunzl.com/bunzl/investor/repub/ Annual Report for the year ended 31 December 2011 Chairman's letter and Notice of 2012 Annual General Meeting As required by the Listing Rules, a copy of the 2011 Annual Report and the Chairman's letter and Notice of 2012 Annual General Meeting have been submitted to the National Storage Mechanism and will shortly be available for inspection at www.hemscott.com/nsm.do
http://www.investegate.co.uk/Article.aspx?id=201203151455094488Z