Menzies on track to hit full year targets

Distribution firm John Menzies said full year results should come in in line with its expectations after a positive second half so far.

In the four months to the end of October the firm said its Menzies Aviation division was on track to deliver full year underlying EBIT growth in line with expectations.

This comes despite an adverse impact from foreign exchange fluctuations.

Overall, year-to-date like-for-like ground handling volumes were up 2.7%, but like-for-like cargo volumes dropped 7.3%.

The firm said it had completed an overhaul of its loss-making UK cargo business and now had a single facility at London Heathrow.

This is now being integrated with the group's stronger ground handling operation.

The company's newspaper distribution arm noted that newspaper sales were ahead of expectations following a number of cover price increases and new business gains from News International and DC Thomson.

Declines in magazine sales were within the range of expectations expected although weekly titles were proving particularly challenging, it added.

Menzies said it remained financially sound, with projections for year-end net debt in line with expectations.

"The group has the resources to invest as opportunities arise within either operating division," its statement said.