International distribution and services firm Bunzl (BNZL) isn’t the kind of business to grab the headlines, rather it works away in the background, steadily growing its operations both organically as it takes on more customers and inorganically as it buys bolt-on businesses.

In much the same way, its share price rarely raises eyebrows – it moves stealthily higher quarter after quarter moving within a fairly clear upward channel.

By our reckoning the firm has grown its EPS (earnings per share) by around 7.3% per year since the start of the 1990s – compared with 3.75% for the FTSE 100 index, of which it forms part – with far less volatility and very few down years, which helps explain why it has a beta of 0.64.

In its interim trading update at the end of June, the group raised its guidance for the full year based on ‘improved margin performance, driven by good margin management, including increased own brand penetration and acquisitions’.

When it reports half-year results on 27 August, overall revenue is expected to dip due to lower volumes in the North American foodservice re-distribution business, as it moves towards an increased own-brand proposition, but the second-quarter exit rate is seen higher than the first quarter.

Meanwhile, the group has spent around £600 million on acquisitions, from a Spanish packaging distribution business to a cleaning and hygiene products distributor in Canada and a surgical and medical devices distributor in Brazil. 

UK UPDATES OVER THE NEXT 7 DAYS

FIRST-HALF RESULTS

27 Aug: Bunzl

29 Aug: Grafton, Hunting, PPHE Hotel Group

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