UK-based distribution and outsourcing group Bunzl has delivered half-year results bang in line with expectations as a recovery in North American revenues offset ongoing weakness at the distribution and outsourcing group’s business in the UK & Ireland.

The group’s largest business, Outsourcing Services, has seen profits increase and is benefiting from some significant sales gains made earlier in the year. This business continues to develop its position in the more resilient sectors and is also benefiting from growth in support services to the resources sector.

The company expects the challenging economic environment will further impact its businesses, but underlying growth in North America should continue.

The UK & Ireland is expected to improve margins despite tough conditions holding back revenue, though Continental Europe is seen “sluggish” compared with a strong second half of 2009.

Positive results are likely to see the company continue its acquisition-based growth strategy. The company, has made eight acquisitions so far this year spending some £100m, said the expected boost to revenue will come through in the second half of the year.

The two most recent acquisitions are California-based Cool-Pak, which will increase the company’s presence in a specialist area of the food processor market in the US; and AM Supply in Brazil expanding Bunzl’s product offering into the developing oil and petrochemical sectors