16th Nov 2010 07:00
INTERIM MANAGEMENT STATEMENT
16 November 2010
JOHN MENZIES PLC today announces its Interim Management Statement in accordance with its obligations under Section 4.3 of the Disclosure and Transparency Rules.
The GROUP is trading well and continues to be highly cash generative. Full year profitability and debt levels are expected to be in line with the Board's current expectations.
MENZIES AVIATION remains on track for an excellent year. Trading has been boosted by cargo volumes which continue to be well ahead of last year. However, monthly comparators are now tougher as the recovery started in Q4 of 2009.
The ground handling business is performing well on the back of an increase in aircraft movements. The major start up of a £70m five year contract, to handle some 90 flights per day for bmi and Lufthansa at London Heathrow Terminal 1, commenced successfully on 1 October 2010.
MENZIES DISTRIBUTION is trading in line with our expectations, although the marketplace continues to be challenging, particularly in the core magazine and newspaper categories.
The majority of business gained following the 2009 contract renewal process has now been taken on. The new business, together with the opening of hub branches in Preston and Maidstone, has highlighted additional operational efficiencies. Delivering these efficiencies will help rationalise the cost base and they are now being pursued.
The Group will announce its Preliminary results for the year ending 31 December 2010 on 8 March 2011.
FOR FURTHER INFORMATION:
Paul Dollman, Group Finance Director, John Menzies plc +44 131 459 8018
John Geddes, Company Secretary, John Menzies plc +44 131 459 8180
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