Shares in Bunzl (LON:BNZL) have jumped in London in today’s session, buoyed by news that the company is not expecting any material impact from the US tax changes. The support services group further announced that it had snapped up two businesses in the UK and the US.
As of 10:52 GMT, Bunzl’s share price had jumped 2.29 percent to 2,051.00p, underperforming the benchmark FTSE 100 index which has slipped into negative territory and currently stands 0.04 percent lower at 7,746.31 points. The group’s shares have lost more than three percent of their value over the past year, as compared with more than a six-percent rise in the Footsie.
Bunzl updates on tax changes
Bunzl said in a statement this morning that although it was still reviewing the full implications of the new tax legislation in the US, it anticipated that there will be no material impact on the results for the financial year ended 31 December 2017 apart from a non-cash, net tax credit. The company also expects that the changes will reduce its effective tax rate for the financial year ending 31 December 2018 to approximately 24 percent.
The update comes after BP (LON:BP) recently warned of a one-off non-cash charge of around $1.5 billion as a result of the tax bill.
Company unveils acquisitions
In a separate statement, Bunzl announced that it had acquired two further businesses in the US and the UK and the proposed sale of a business in France.
“The acquisition of Revco represents a further development of our safety business in the US with the business in particular complementing and strengthening our existing presence in the welding and industrial supplies market. The purchase of Aggora Group has extended our catering equipment business in the UK,” the group’s chief executive Frank van Zanten commented in the statement.