MNZS

14/12/05

John Menzies sees FY results 'well above' last year

LONDON (AFX) - John Menzies PLC, the UK logistics group, said it expects
results for the year to Dec 31 2005 to be "satisfactory" and "well above" last
year's outturn and forecast further progress in 2006.
It expects to announce year to end-Dec 2005 results in March. Going into
today analysts were forecasting a profit before tax, exceptionals and goodwill
of about 37 mln stg, up from 33.9 mln stg last time.
The group said that at its Menzies Distribution division trading has
reflected the overall weakness in consumer spending.
It said partworks and monthly magazines have traded behind last year, whilst
weekly magazines and weekend newspapers have shown some improvement. The
division has benefited in the second half from tight cost control and a 53rd
week.
The division's contract renewals with publishers continue to progress
"satisfactorily" with market share up marginally. However, there has been some
margin reduction.
The Office of Fair Trading is continuing to assess its position on
arrangements for newspaper and magazine distribution. John Menzies does not now
expect any further announcement until early next year.
At the Menzies Aviation division trading continues to be "well ahead" of
last year, with like-for-like volume growth in ground handling.
However, in line with industry trends, the second half saw a slowdown in
cargo volumes.
At Heathrow, Menzies failed to retain the BAA PLC airside inter-terminal
bussing and baggage transfer contract which will now end in April 2006. However,
it has won the new BAA landside 'Heathrow LOOP' bussing contract which starts in
Jan 2007.
Menzies noted its operations at Cancun, Mexico, experienced severe
disruption from Hurricane Wilma, the effects of which will continue into 2006.
Overall, the aviation division was a net winner of contracts and recently
secured easyJet PLC in Belfast and Singapore Airlines in Melbourne and Auckland.
"Despite more difficult trading conditions, progress has been achieved
in the second half of the year," said the group.
"There will be a continued focus on tight cost control at Menzies
Distribution and an increased emphasis on investment for growth at Menzies
Aviation whilst maintaining appropriate capital disciplines. The group expects
to make progress in 2006 despite the current challenging trading environment."
John Menzies shares closed Tuesday at 523 pence.