Interim Management Statement

John Menzies plc

Interim Management Statement

13 November 2012

John Menzies plc, today issues anInterim Management Statement in accordance with its obligations under Section 4.3 of the Disclosure and Transparency Rules for the period from 1 July 2012 and is based on trading results for the four months ended 31 October 2012.

John Menzies plc

The positive start to the second half has continued and the Board expects the full year result to be in line with its expectations.

Divisional Performance

At Menzies Aviation the division is again on track to deliver full year underlying EBIT growth in line with expectations, despite the adverse impact of foreign exchange fluctuations.

Overall, year to date like for like ground handling volumes are up 2.7% (absolute 7.8%) as the underlying business continues to perform well in a tough trading environment. Cargo volumes continue to be stable but soft with like for like volumes down by 7.3% although absolute volume is up 2.5% reflecting the annualisation of contracts won in the prior year.

The re-structure of the loss making UK cargo business is complete and has allowed the division to exit four facilities and concentrate its main cargo offering on a single facility at London Heathrow which is being integrated with the stronger ground handling operation, similar to other large, successful airport operations. This leaves just one material loss making cargo operation, in Chicago.

The three acquisitions made during the year have been integrated to existing operations and are making positive contributions. Flight Support (UK) and Prague Handling (Czech Republic) are examples of consolidation which deliver synergies and Kamino Cargo (Romania) demonstrates the potential to add the cargo product to ground handling, where the market dynamics are attractive, and strengthen regional density. Further organic and acquisition growth opportunities exist, where management will follow a structured growth plan to enter new, attractive markets where the division believes there are good growth prospects, hurdle rates of return can be achieved and long term value can be created.

Trading at Menzies Distribution is broadly in line with last year.

Newspaper sales have been ahead of expectations following a number of cover price increases and new business gains from News International and DC Thomson. Declines in magazine sales are within the range of expectations expected although weekly titles are proving particularly challenging.

Rationalisation projects continue, with infrastructure changes in the Scottish central belt and Yorkshire now complete and further plans under way in East England. The final stage of the SAP implementation is operational with the system now installed throughout Ireland. With this major project now complete management will be able to focus on continued cost reduction as well as looking for further benefits now that SAP is imbedded in the business.

Financial Position

The Group remains financially sound with a strong balance sheet. £75m of banking facilities have recently been agreed, following the renewal of £50m of existing facilities together with a further £25m of facilities that run through to 2015. Projections for year-end net debt are in line with expectations and the Group has the resources to invest as opportunities arise within either operating division.

There has been no material change to the Group's financial circumstances since the announcement of the Interim Results in August and we remain well placed to deliver sustainable earnings growth.

For further information:

Paul Dollman, Group Finance Director, John Menzies plc +44 131 459 8018

John Geddes, Group Company Secretary, John Menzies plc +44 131 459 8180

Jonathon Brill/Alex Beagley, FTI Consulting +44 207 831 3113