Specialist distribution firm Bunzl has expanded with a raft of fresh acquisitions as it reported a decline in first-half profits.
However, shares in the company ticked higher after it resumed its share buyback programme.
The FTSE 100 company scrapped its buyback in April alongside a major profit warning linked to challenges in its North American business.
However, on Tuesday, bosses restarted the programme and said it was “seeing early positive indicators of success” in North America.
Bunzl said it has made “good progress” following action taken to improve performance in the region and in continental Europe, adding that its expects improved trading in the second half of 2025 as a result.
The firm also expects to be boosted by recent acquisition activity.
On Tuesday, the company announced the acquisition of Spanish food service distributor Quindesur and a deal to buy Mexican protective equipment specialist Guantes Internacionales (Gisa).
The business also confirmed that it has completed two other previously announced acquisition deals.
Chief executive Frank van Zanten nevertheless said the company had a “challenging” first half of the year and still faces “uncertain” macro-economic conditions.
It reported that revenues rose by 0.8% to £5.76 billion for the six months to June, compared with the same period a year earlier.
Meanwhile, operating profits slipped by 14% to £330.5 million for the period, after profitability was impacted by weakness in North America.
Mr van Zanten said: “We are reiterating our group outlook for 2025 and expectations for an improved performance in the second half, driven by the actions taken.
“Notwithstanding a challenging first half for Bunzl, and the ongoing uncertain macro-economic backdrop, our teams are very focused on improving performance, and I remain confident in Bunzl’s underlying resilience and strong business model, and its ability to deliver consistent compounding growth in the medium term.”
Shares were up 5% in early trading.
