CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Bunzl (BNZL) stock holds steady on market update

By Adrian Holliday

11:03, 15 December 2021

Bunzl company logo displayed on phone in front of the Union Flag
Bunzl has forecast its results for 2021 will demonstrate a “strong performance” – Photo: Shutterstock

Bunzl shares flatlined this morning following its full-year pre-close statement. Shares of the hard-hats-to-hospitality-and-packaging company opened at £28.89 and had inched up just 0.03% by mid-morning in London.  

Often seen as one of the FTSE 100’s duller businesses, Bunzl (BNZL) – which has reaped the benefits of distributing Covid-19 personal protective equipment – forecasted a “strong performance” for 2021, predicting underlying revenue growth in the upper single digits. Its share price is up almost 17% in the last 12 months.

At constant exchange rates, underlying revenue growth was expected “to reflect a strong recovery in the base business, supported by inflation, partially offset by the anticipated decline in Covid-19 related orders with deflation on certain Covid-19 related products”. 

Essential services for an on-going pandemic 

Bunzl said: “Group adjusted operating margin is expected to be only slightly ahead of historical levels.”

While the company acknowledged that uncertainties around inflation (up strongly in November) and Omicron lay ahead, it added: “At constant exchange rates, the group expects revenue in 2022 to be slightly higher than in 2021, driven by the impact of acquisitions completed this year. 

GME

15.56 Price
-4.230% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.16

COIN

147.43 Price
+8.350% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.54

TSLA

243.74 Price
+0.430% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.22

NVDA

475.08 Price
+2.100% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.14

“Continued recovery of the base business is expected to be offset by the further normalisation of sales of Covid-19 related products.”

What is your sentiment on BNZL?

30.97
Bullish
or
Bearish
Vote to see Traders sentiment!

M&A potential undimmed

Chief executive officer Frank van Zanten said Bunzl’s acquisition pipeline remains strong.

He added: “While we expect some continued normalisation of revenue mix in 2022, the performance since the start of the pandemic has only reinforced my confidence in our strategic focus and compounding growth model.”

Read more: Tesco avoids strike action with improved pay offer 

Markets in this article

BNZL
Bunzl
30.97 USD
0.42 +1.380%
BNZL
Bunzl
30.97 USD
0.42 +1.380%
BNZL
Bunzl
30.97 USD
0.42 +1.380%

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading