Helped by 13 acquisitions, Bunzl (BNZL) reported solid full-year figures. But the performance wasn't as robust as the headline figures suggest - adjust for acquisition costs and last year's UK vending business disposal loss, and underlying pre-tax profit rose 6 per cent to £324m.
Moreover, strip out the £272m-worth of acquisitions and organic revenue growth reached just 2.6 per cent, compared to 4 per cent growth in 2011. Those acquisitions, however, supported growth across most of Bunzl's regions. North America, which contributes 54 per cent of revenue, saw operating profit jump 8 per cent. While continental Europe grew revenues 8 per cent, although operating profit here still slipped 2 per cent amid tough market conditions. Meanwhile, the UK & Ireland operation, despite flat revenues, grew profit 8 per cent, helped by cost-cutting and product mix improvements. The Rest of the World operation, however, saw revenue soar 23 per cent with profits up 22 per cent. Management believes the pace of acquisition can continue, too - the purchase of an Australian surgical supplies business was announced with the results.
J.P. Morgan Cazeonve has upgraded its adjusted EPS forecast by 2 per cent to 76.5p for 2013 (from 70.2p in 2012).
BUNZL (BNZL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,220p | MARKET VALUE: | £3.93bn | |
| TOUCH: | 1,218-1,220p | 12-MONTH HIGH: | 1,251p | LOW: 924p |
| DIVIDEND YIELD: | 2.3% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 275p* | NET DEBT: | 83% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 4.18 | 207 | 44.5 | 20.6 |
| 2009 | 4.65 | 216 | 46.4 | 21.6 |
| 2010 | 4.83 | 225 | 49.1 | 23.4 |
| 2011 | 5.11 | 194 | 38.2 | 26.4 |
| 2012 | 5.36 | 269 | 59.9 | 28.2 |
| % change | +5 | +39 | +57 | +7 |
Ex-div: 8 May Payment: 1 Jul *Includes intangible assets of £1.3bn, or 411p a share | ||||
