FTSE 100 firm raises dividend for 24th year in a row
Companies: Bunzl plc
International distribution and outsourcing firm Bunzl plc released three regulatory news updates this morning, publishing strong final results, confirming the acquisition of Singaporean LSH, and announcing that Lloyd Pitchford will replace David Sleath on the board on 1 March.
Bunzl reported 14% revenue growth to £7.4bn, a 15% jump in adj operating profit to £525m, and a 17% jump in EPS to 106.1p, after the Brexit-induced collapse in sterling dramatically aided the top line (+10%). The firm reported "good" increases at constant exchange rates.
The Group's operating margin increased slightly to 7.1% after benefitting from 15 acquisitions, whilst cash conversion continued to be strong. This led to Bunzl continuing its 24-year track record of dividend growth, increasing its latest payment by 11%.
Frank van Zanten, Bunzl Chief Executive, said he was delighted with the acquisition of LSH and stressed that despite facing a challenging macroeconomic backdrop, the Board believes that the firm is well-positioned with an international portfolio and solid organic growth rates.
"Bunzl has delivered another good set of results in 2016. The strength, resilience and reliability of our business model and strategy that we have applied consistently over many years, together with the compounding effect of our high cash conversion and our ability to take advantage of market consolidation opportunities, have enabled Bunzl to produce a strong long-term performance.
...recent customer wins and a promising acquisition pipeline will lead to continued overall growth for the Group."
Shares in Bunzl jumped 2% as the market opened on Monday.
