Bunzl Tuesday said, amidst announcing its fiscal postings that it will be undertaking further acquisitions to grow and enhance its business. The UK based packaging and Distribution Company Tuesday posted its half year results, reiterating that its net profit went up by 6.9 per cent to 69.6 million pounds.

Bunzl’s revenues went up by 2.3 per cent to peg at 2.35 billion. On the other hand, the firm’s revenue went up by 4% for its North America business, a fact Bunzl attributed to increased volumes from its current customers. Subsequently, Bunzl hopes to be able to build its acquisitions war chest with the accrued revenues for additional investments.

As it stands currently, the firm has already agreed on the purchase of six acquisitions this year. Bunzl reiterated that the acquisitions are targeted at enabling the firm realizes further growth and development of its business. The continued push for acquisition investments is expected to give the firm a reinforced platform that will aid in further growth and expansion, said Bunzl.

As such, the firm said it is keen on hiking its interim dividend by 8 per cent to 7.15 pence for every share held. Bunzl chief executive officer, Michael Roney, said the company would continue seeking acquisitions as key to growth. According to Roney, acquisition growth via consolidation of the fragmented markets that the company partakes of is a crucial part of its growth strategy, he said.

As such, Roney reiterated that Bunzl is expecting the existing market environment to enable it complete further, additional acquisitions in 2010. The strong underlying revenue growth seen in the first quarter in the U.S. continued, the group said. It added that it expects to make more acquisitions before the end of the year.

Bunzl plc is a multinational distribution and outsourcing business based in London. It was originally established as a manufacturer of cigarette filters, crêpe and tissue paper. However, Bunzl is today primarily a distributor of a diverse range of products including food packaging, cleaning and hygiene supplies, personal protective equipment (PPE) and carrier bags. The company's customers include contract cleaners, retailers, catering firms and food processors.

Almost half of Bunzl's business is conducted in North America, with the company also operating in the British Isles, Continental Europe and to a lesser extent Australasia.

31 Aug 2010.