Distribution and outsourcing group Bunzl (LON:BNZL) reported an 11pc rise in first half revenue on Wednesday, after a period of expansion and acquisitions.
The group benefitted from a boost to revenue over the period, but added that underlying revenue growth had returned to more normal levels during the second quarter of 2018 as the group absorbed its new North American grocery business.
Going forward, Bunzl said it expected exchange rate movements to decrease constant exchange revenue growth for the first half by 6 percent, but said that so far trading was in line with expectations.
The group confirmed that its spend on acquisitions so far this year totalled £105 million, with acquisitions remaining a key part of business strategy.
“The pipeline for acquisitions remains active and, with ongoing discussions taking place, the company expects to complete further transactions during the remainder of the year,” the company said.
Bunzl also sold its marketing services business in the UK during the period, which had generated annual revenue of £46 million for the firm.
“The business was considered to be non-core as the opportunities to expand overseas in the short to medium term were limited and the company therefore decided that it was an appropriate time to sell the business,” Bunzl said.
Shares in Bunzl (LON:BNZL) are currently trading down 2.53 percent at 2,234.00 (1012GMT).
