SHARE OF THE WEEK: Bunzl investors have much to look forward to

Bunzl will be looking to end the summer on a high with its first-half results on Tuesday. 

With shares trading close to an all-time high, investors have much to look forward to. 

The company supplies products ranging from toilet rolls and latex gloves to cleaning chemicals to the private and public sectors. 

Despite soaring inflation, its products are withstanding the economic woes. 

In June’s update, Bunzl raised its guidance for 2022 and said that it now expects ‘very good’ revenue growth rather than ‘moderate’. 

The company has forecast its first-half revenue to rise by 16 per cent on the back of its positive trading in Europe, the UK and the US. 

Turning to profit, analysts have pencilled in an 11 per cent rise to £633m for the year. 

This is much more than last year when Bunzl reported profit of £245m. 

Whether shareholders can get a good return will also be high on the agenda. 

Bunzl is expected to increase its dividend payment by 9 per cent to 62p a share. 

This time last year it handed investors 16.2p a share. 

There can be little confusion over Bunzl’s acquisition strategy. Throughout its history it has been a prolific dealmaker. 

And it has made no secret of plans to continue expanding, having already snapped up six companies this year at a cost of £220m. 

If Bunzl wants to surpass its £508m spend on 14 acquisitions last year then investors should expect more news on that front.

Watch this space!