Weak dollar is a worry for Bunzl

THE dollar's continuing weakness is proving a drag for the cigarette filters and international distribution group Bunzl.

The company said in a trading statement today: 'In an improved but still uncertain economic climate, current trading remains satisfactory although the persistence of the current level of the dollar is having a translation impact compared to the first half of 2003.'

The trading update, which preceded results for the six months to June 30 due on August 31, is set to underscore analysts' expectations that Bunzl will deliver full-year underlying pre-tax profit of around £215m.

Some 70% of Bunzl's largest business, the outsourcing of distribution, is done in North America. Despite the currency worries, its profits are set to be in line with analysts' expectations.

The shares, which have been close to a two-year high, were steady today 458 1/4p.