Hygiene fears from swine flu scare help Bunzl clean up

The swine flu scare changed the country's hygiene habits and pushed up demand for hand gels, towels and wipes in offices, according to the boss of Bunzl, one of Britain's biggest suppliers of the products.

Chief executive Michael Roney today said Bunzl had a spike in demand for anti-swine flu products in the second quarter of 2009: "That higher demand hasn't disappeared — people are now more conscious of the need for frequent washing."

Bunzl posted a six per cent rise in annual profit to £257.8 million for last year. Growth was also pushed up by products such as paper plates and packaging in North America, which supplies half of its turnover.

Roney said Bunzl was cashing in because firms turned to outsourcing to cut costs and concentrate on their core businesses.

"To free up warehouse space for products that are essential to their strategy, they're increasingly turning to us to supply bulky, low-value products like coffee cups, plates and utensils," he said.

Bunzl today bought Denmark's Hamo, which makes disposable catering goods, for £1.5 million and Roney said it would be shopping for more acquisitions this year.

The firm is raising its dividend five per cent to 21.55p.