Menzies annual results on course to beat City hopes

Menzies is confident of delivering annual profits ahead of City forecasts. Picture: Contributed

Menzies is confident of delivering annual profits ahead of City forecasts. Picture: Contributed

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Logistics group John Menzies today said its full-year results should come in “marginally” above City expectations as it benefits from the weaker pound.

The Edinburgh-based baggage handler and newspaper distributor, which recently struck a £153 million deal to buy US aviation services group ASIG, told investors that it “continues to trade well” as it approaches the end of its financial year on 31 December.

READ MORE: Menzies in £153m swoop for aviation services rival

It said it was confident that annual results would be “marginally ahead” of current market expectations, adding: “The group continues to benefit from foreign exchange tailwinds, which will further enhance the full year result.”

Following the “transformational” deal to buy Florida-based ASIG, which employs about 8,000 people and is one of the world’s largest independent providers of commercial airline services, Menzies has signed a new syndicated bank facility of a $250m (£201m) term loan and a £150m rolling credit facility, subject to the completion of the acquisition, expected early next year.

READ MORE: Monday Interview: Giles Wilson, chief financial officer at John Menzies

Today’s trading update came as Menzies said that company secretary John Geddes, who has been with the group for 19 years, had been appointed to its board as corporate affairs director with immediate effect. In his new role, Geddes will focus on governance, risk and shareholder relations.

It also announced that aviation industry veteran Andy Lord, a former director of operations at British Airways, has come on board as executive vice-president for Europe, the Middle East, Africa and India at its aviation division.

Meanwhile, Menzies said that a further announcement regarding the leadership team at its distribution arm will be made “imminently”.

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