Distribution and outsourcing group Bunzl (LON:BNZL) reported revenue of £2.345bn for the half-year to end-June, up 2% from £2.293bn in the prior year period. Earnings per share rose 6% to 21.6p and the interim dividend rose 8% to 7.15p. Elsewhere, operating profit before intangible amortisation and acquisition related costs increased 6% to £140.5m, up 7% at constant exchange rates, as margins improved. Bunzl credited the performance to cost reductions previously taken and the absence of a negative transaction impact from foreign exchange in its operations in the UK & Ireland and the rest of the world, which particularly affected these business areas in the first half of last year.
Profit before tax, intangible amortisation and acquisition related costs was up 8% to £125.1m, up 9% at constant exchange rates. Earnings per share rose 6% to 21.6p, up 6% at constant exchange rates, and adjusted earnings per share, after eliminating intangible amortisation and acquisition related costs, increased 10% to 27.5p, also a 10% increase at constant exchange rates.
Bunzl said it had decided to increase the interim dividend by 8% to 7.15p. Shareholders will again be able to participate in the scrip dividend scheme which the group introduced in 2009 to replace the dividend reinvestment plan.
Bunzl's chief executive, Michael Roney, said: "In spite of the continuing difficult economic conditions, I am pleased to report good growth in profitability and continued strong operating cash flow for the first half of 2010. This, combined with the resumption of acquisition activity which has resulted in us acquiring businesses with annual revenues of £140m so far this year, gives us a platform and momentum for further growth."
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