John Menzies FD resigns after in-line 2012

John Menzies, the aviation and distribution group, has said that full-year results will be in line with expectations in 2012 after 'continued progress' in the fourth quarter.

The news comes alongside the resignation of Finance Director Paul Dollman, who announced his intention to retire from the board on May 17th at the group's annual general meeting (AGM). The firm said that he intends to "concentrate on building a portfolio career".

Chairman Iain Napier said: "Paul has done an outstanding job for John Menzies plc over the last 10 years and we wish him well for the future. He has been an integral part of the executive team and has played a key role in the success of the group. A full search process is underway and we will make a further announcement at the appropriate time."

Non-executive director Ian Harrison, who has been with John Menzies since 1987, has also said that he would not be seeking re-election at the AGM.

Restructuring

In regards to the business, the company has undergone a series of restructuring actions across both its divisions as of late, which will result in a full-year exceptional charge of around £18m.

This includes the £7m charge to close its cargo handling operations at Chicago Airport. The firm said that this decision will improve earnings before interest and tax in 2013 by around £1.4m.

"The enhancements to underlying earnings from these actions are included within the board's expectations and leave the group in a stronger position with a more stable platform for growth," the company said.

Net debt is expected to be below £100m for the end of 2012, compared with the £80.1m registered at the end of 2011.