Shares suge for Menzies as new non-executive chairman named

Published on Wednesday 11 November 2009 20:53

NEWSPAPER distribution and aviation services firm Menzies enjoyed a share price fillip yesterday after reporting its annual results would be "well above" the market's expectation.

After making a statement to the stock exchange, the group's shares were up by 9 per cent, to 349p.

The group also announced the appointment of Iain Napier, current chairman of Imperial Tobacco, as non-executive chairman. The current chairman, William Thomson, who will be 70 next year, confirmed he will retire at the AGM in May 2010.

Yesterday Paul Dollman, group finance director, welcomed Napier's appointment. "He is a FTSE 100 chairman, we are quite lucky to have him," said Dollman.

He also paid tribute to Thomson, who has chaired the group for seven years.

"I will miss William hugely, he has been around a long time.

"He has managed to juggle the executive management and the family, that is always a key skill in a chairman in a business with a big family interest like ours. He was chairman throughout the whole move into aviation, too. He is a good man."

Both divisions, aviation and distribution, are expected to contribute to the better-than- expected results at year end.

Following "transformational change" to its business after acquiring a number of contracts from distribution company Dawson Holdings, Menzies said integration costs were lower than expected. "Things have run smoothly there," said Dollman.

Income was also boosted by winning a larger part of Dawson's higher-margin magazine business than had been expected.

He added that declines in magazine sales had "slowed down quite a bit" to 4 to 5 per cent, from a previous high in the first half of 8 to 9 per cent.

Aviation also showed "continued resilience" despite falls in cargo volumes and passenger numbers.