Menzies in Demand, but UK Coal Catches Fire

John Menzies plc, the Edinburgh-based logistics company that is a constituent of the FTSE Small Cap Index, which consists of companies outside the FTSE 350 Index, was one of several companies reporting results on Tuesday. Menzies found favour with investors, its share price closing up 14.5p, or 4.42%, at 342p – having touched a high of 350p earlier in the session – after it reported that pre-tax profits more than doubled in 2009.

Dominic Turner
shareprices.com - Tuesday, March 09, 2010

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Pre-tax and underlying profits increased to £22 million from £9.9 million and £35.2 million from £30.7 million, respectively, for the year ended 31st December 2009 as a result of cost-cutting measures and new contracts, Menzies said. Net debt fell by £50.3 million to £132.3 million and Menzies reinstated dividend payments, with payment of 8p per share in lieu of a final dividend.

Menzies was optimistic about the outlook for 2010, with both of its operating divisions, Menzies Distribution and Menzies Aviation, trading above 2009 levels. Menzies Distribution has seen an increase in sales so far this year, compared with last year, but overall trading levels in 2010 remain unchanged and an increase in cargo and ground handling volumes, year-on-year, at Menzies Aviation must be viewed in the light of poor figures during the same period in 2009.

Menzies could not match the performance of Britain's largest coal mining company, UK Coal plc, which leapt 12.38% to 59p – having traded as high as 80p at one point – and led the FTSE Small Cap Index, after merger and acquisition speculation surrounded its deep mining operations in central and northern England.

 

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