Bunzl plc (LON: BNZL) have said to firms that they have remained optimistic to meet expected revenue growth in a tough market.
Despite the optimism, it seems that shares in Bunzl have remained in red on Tuesday.
Bunzl shares trade at 2,085p (-0.71%). 17/12/19 11:12BST.
Bunzl is one of the biggest British outsourcing companies, having specialist international distribution services all across the world. The firm is a main stay on the FTSE 100.
Bunzl yesterday had seen their shares in green, as the firm seemed to benefit over the Boris Bounce.
Bunzl saw their shares rise the third largest in the FTSE100, just behind Glencore (LON: GLEN) and British American Tobacco (LON: BATS) however all three of these firms saw their shares boosted by over four per cent.
It seems that the election bounce has now ended for Bunzl, as the firm said that it was on track to meet revenue growth figures however weak economic conditions were weighing down on trading.
Bunzl expects revenue for 2019 to rise by 2% with revenue at constant rates rising by 1%. Underlying revenue, London-based Bunzl noted, is set to be flat on 2018.
The firm saw a dip in its underlying revenue back in October, within its third quarter update and the firm alluded to economic conditions being a constraint on trading globally.
Shareholders will remain optimistic however, as the firm did announce the acquisition of Fire Rescue Safety Australia, which distributes specialist fire safety and personal protection equipment.
Chief Executive Frank van Zanten commented: “FRSA has a market-leading position in the provision of emergency response solutions in Australia and further expands and develops the scope of our operations there. We are delighted to welcome their employees to the group.”
“The group’s expectations for the year 2019 remain unchanged with overall trading consistent with the slowing underlying revenue growth indicated in previous announcements this year due to the impact of the continued mixed macroeconomic and market conditions across the countries and sectors in which the Group operates,” said Bunzl.
In the tough operating market, it does seem that Bunzl are doing well and having had a track record of fighting market slumps, shareholders can remain positive for future outlook.
