John Menzies performs well despite tough trading conditions

John Menzies, the FTSE 250 aviation and distribution group, has pleased investors with an upbeat set of full-year results for 2012, despite difficult trading conditions at both its operating divisions.

Revenue made a marginal decline to £1,996.8m (2011: £2.013.8m), but underlying pre-tax profit rose to £58.4m from £56.4m the previous year.

Underlying earnings per share inched 0.2p higher to 73.4p.

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The dividend was increased by 0.85p to 17.85p.

Menzies Aviation, where operating profit on a constant currency basis was up 16%, turned in a strong performance despite airline failures and currency headwinds, the group said, adding that future prospects remain good as it aims to deliver on its organic and selective acquisition growth plans.

At Menzies Distribution, which helf profits flat, the acquisition of Orbital Marketing Services Group has provided the division with a "highly synergistic business that will offer new areas of potential growth".

Chairman Iain Napier said: "The group continues to trade on a sound footing with both divisions returning good results. Market conditions remain tough, but despite this we continue to deliver our targets.

"Overall the group is well placed to continue to deliver growth."

Group net debt increased to £93m mainly due to spend on acquisitions, while the cost of exceptional items for the year came in at £18.4m.

The share price rose 3.61% to 775p by 11:50 Tuesday.

NR