Share Centre share of the week: Bunzl
“Amidst recent market instability, support services group Bunzl is one for lower risk investors to consider. Solid interim results in August reported an 11% rise in profits to £147.1m, along with a 7% rise in revenues. There was also good news for investors with an increased interim dividend of 11.7p – also up 7%. Bunzl’s approach of making acquisitions to boost revenue and profit continues to work well, and has led to its aforementioned improved dividends and a strong share price performance over the last four years. The company has a global presence, which has protected it from regions that have suffered more in recent times, such as Europe. The weakness in sterling against the dollar should also further benefit the group’s results.
“Bunzl is a defensive pick in volatile times, as it provides a range of essential products such as plastic cutlery, toilet rolls and cleaning products. The group has had continued success during tough times, and we regard it as being a well-managed business. We are currently recommending the group as a ‘buy’ for lower risk investors with a balanced investment objective.”