Menzies(John) PLC AGM Trading Update (8077Y)
May 20 2016 - 2:00AM
UK Regulatory
TIDMMNZS
RNS Number : 8077Y
Menzies(John) PLC
20 May 2016
20 May 2016
John Menzies plc
("John Menzies" or the "Group")
AGM Trading Update
John Menzies plc today provides a trading update for the first
four months of the year from 1 January 2016 to 30 April 2016, in
advance of its Annual General Meeting to be held today.
The Group has made a good start to the year and is trading in
line with the Board's expectations. Both Aviation and Distribution
divisions are progressing well with their strategic and operational
agendas.
Menzies Aviation is trading ahead of last year with revenue
growth in the period up 7% at constant currency. Absolute ground
handling turns are up 4% reflecting continued contract win
momentum. Following a very strong prior year, cargo volumes have
reduced and are down 2% on a like for like basis.
In February, we completed the acquisition of Renaissance
Aviation in Bermuda which has a five year exclusive licence and we
will provide a suite of aviation services to a number of
international airlines.
Contract win momentum has continued with ground and cargo
handling contracts gained and renewed. Notable new contracts
include British Airways in Copenhagen, Virgin America at their hub
in Los Angeles and we have also secured preferred supplier status
with Singapore Airlines.
Within Menzies Distribution, the sales decline in print media
remains similar to that experienced in 2015, at 4% for the period.
In the period the acquisitions of Oban Express and Thistle Couriers
were concluded and are integrating well. We continue to identify
further business opportunities in the e-fulfilment market.
The Board is progressing its evaluation of the optimal structure
for the Group against the potential opportunities for expansion and
acquisition in both divisions, as well as being mindful of its
obligations to its pension scheme. We have therefore appointed
additional pension advisers to work with our existing team and,
following initial engagement with our pension trustees, we have
begun to explore the various options. We intend to provide an
update of the preliminary conclusions from this initiative by the
end of the year.
Iain Napier, Chairman of John Menzies plc, commented:
"2016 has started well across the Group and we continue to
progress our growth strategy across both divisions.
"As I am retiring at the conclusion of today's Annual General
Meeting I would like to take this opportunity to say how much I
have enjoyed my time with the company and wish everyone connected
to Menzies all the very best for the future."
The Group's Interim Results will be announced on 20 August
2016.
For further information:
John Menzies plc
Paula Bell, Chief Financial
Officer +44 131 459
John Geddes, Company Secretary 8018
FTI Consulting
Jonathon Brill +44 203 727
Alex Beagley 1000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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