Bunzl plc (BNZL) Ordinary 32 1/7p
HL comment (11 December 2014)
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- At constant exchange rates, Bunzl expects full year group revenue growth to be around 6%.
- Bunzl remains sensitive to currency fluctuations. Management previously noted that "If current exchange rates prevail for the rest of the year, the reported results will continue to be adversely affected by the translation impact of the relative strength of sterling."
- Some analyst concern regarding valuation has been expressed. The share price has outperformed the broader FTSE-100 index by nearly 20% over the last year alone.
- The company operates in highly competitive markets and faces competition from international companies as well as national, regional and local companies in the countries in which it operates.
- Acquisitions always bring an element of risk.
- Bunzl said the current environment for acquisitions remains positive, and it has "a promising pipeline of opportunities." Acquisitions remain a key component of Bunzl's growth strategy. The company has acquired 14 businesses year to date.
- Overall trading had remained in line with management's expectations.
- Both geographical and customer industry diversification are enjoyed.
- A progressive dividend policy continues to be pursued by the board. The interim dividend was increased by 10% to 11 pence. The total dividend for the 2013 financial year was increased by 15% when compared to 2012.
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