Bunzl raised its full-year profit guidance and said revenue should be slightly higher than last year, driven by 12 acquisitions announced since January. That gave the London-based firm’s shares a boost at the open. Before today, the stock had lost by 16% since its April peak as inflation-driven price tailwinds for its products started to fade.
(Bloomberg) — Bunzl raised its full-year profit guidance and said revenue should be slightly higher than last year, driven by 12 acquisitions announced since January. That gave the London-based firm’s shares a boost at the open. Before today, the stock had lost by 16% since its April peak as inflation-driven price tailwinds for its products started to fade.
Here’s the key business news from London this morning:
In The City
Bunzl Plc: The company expects full-year adjusted operating profit to be moderately higher than in 2022 as it announced two further acquisitions, including its first one in Poland.
- Adjusted pretax profit in the first-half was just ahead of estimates
- First-half revenue dropped in North America, its largest market, as sales of takeaway packaging shrank following a pandemic-era boom
Dalata Hotel Group Plc: The Irish operator of Clayton and Maldron Hotels reported a 24% increase in adjusted Ebitda in the first half.
- The recovery of international travel is providing a “positive backdrop” for its markets
Food Inflation: The slowest increase in grocery bills in almost a year drove down inflation in British shops in August, relieving some of the pressure on the Bank of England to keep raising interest rates.
- Shop price inflation fell to 6.9% in August from 7.6% the month before, the British Retail Consortium said
- Food prices led the decline, particularly meat, potatoes and cooking oils
Every driver in London, as of today, is now subject to strict pollution rules. That’s as the Financial Times reports that Sadiq Khan has dropped plans for an additional charge on all combustion-engine vehicles in central London, the latest sign that the mayor is rethinking his pollution crackdown amid opposition from motorists.
Meanwhile, the Labour party faces a backlash from its left wing after ruling out wealth taxes and promising to cut business regulations as it looks to shore up its economic credentials ahead of a general election expected next year.
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Laboratory equipment maker Danaher Corp. will buy Abcam Plc in a deal worth $5.7 billion. It beat out rivals in a race to acquire the UK-based maker of supplies for the life-sciences industry that is sometimes called the “Amazon of antibodies.”
Standard Chartered Plc agreed to sell its aviation finance business to a unit of Saudi Arabia’s sovereign wealth fund for $3.6 billion and signed a separate deal to offload a portfolio of loans as part of efforts to boost returns. The deal is part of a push by Saudi Arabia to become a global trade, logistics and tourism hub, and help diversify its economy away from a reliance on oil sales.
Investors will scrutinise new business volumes in Prudential Plc’s home market when the Hong Kong-based insurer publishes half-year results at 7 a.m. The results will be a “litmus test” as to how well the market has returned to normal after the pandemic, said Bloomberg Intelligence’s Kevin Ryan. London-listed Prudential’s shares are among the worst performers this year in an index of peers.
UK mortgage approvals for July will also be in focus tomorrow morning. The print comes as the average two-year fixed-rate mortgage deal last month hit the highest level since 2008, according to Moneyfacts. The correction in the housing market likely has “some way to go,” Bloomberg economists said.
For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.
–With assistance from Tuhin Kar.
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