Overview
• Implementation of the Group strategy on track
• Group earnings impacted by Aviation operational issues at London Gatwick - now resolved
• Aviation turnover up 6%
o Business performed well outside of the UK
o Strong cargo handling volumes driving margin improvement
o Ground handling hub wins performing well
• Distribution strategy delivering
o Good progress, media decline mitigated - operating profit £25.1m (2014: £24.0m)
o Distribution network rationalisation complete
o Winning new contracts in wider logistics market
o E-commerce bolt-ons acquired and integrated
• Impressive cash conversion of 110% - robust balance sheet
• Successful conclusion to triennial pension funding plan
• Dividend up 4% to 16.8p
Iain Napier, Chairman of John Menzies plc said:
"Our updated strategy for both divisions is now embedded and we are making good progress towards our stated objectives.
"However, 2015 was a challenging year for the Group with operational issues at London Gatwick suppressing profits.
"Outside of the UK, the Aviation business continued to make progress, particularly in cargo handling and North American ground handling. Menzies Distribution performed strongly, whereby print media decline was fully mitigated and our expansion into the e-commerce fulfilment market gained real traction with the acquisitions of AJG Parcels and Oban Express, and a number of new contract wins.
"The Board is confident that we have strategies available to us in both of our operating divisions capable of delivering growth. We continue to evaluate the optimum structure for the Group to potentially further enhance shareholder value."
