Overview
• Group transition plans on track despite a challenging first half
o Aviation turnover up 8% - strong cargo volumes and last year's hub wins performing well
o Aviation profits impacted by restructuring costs, UK operational improvement programme and 2014 contract losses
o Distribution outperformed management's expectations
o Good progress with Distribution network rationalisation
o As projected, profits will be weighted to H2
• Strong cash conversion
Strategy
• Distribution strategic review complete - focus on earnings growth
• Grow B2C business through neutral consolidation within the parcel delivery market
• Acquisition of AJG Parcels is integrating well and providing opportunities for scaling
• Aviation - implementation of the strategic plan gaining momentum
Jeremy Stafford, Chief Executive of John Menzies plc said:
"Our transition plans are on track and progressing well although the first half of the year has been challenging as we continue to address the operational issues that arose during 2014. The North American aviation outsourcing market remains very busy and a pipeline of opportunities continues to build. At Distribution, the core business is performing well and the anticipated volume decline has been fully mitigated. We have completed our strategic review and I am delighted that we have recently made our first step as a neutral consolidator into the growing e-commerce parcel market with the acquisition of AJG Parcels. In terms of Group full year performance, as we previously highlighted, profits will have a greater second half weighting this year as we continue to transition the business. There is a great deal of potential across the business and we remain on track."
