John Menzies plc today issues a trading statement ahead of its interim results for the half year ending 26 June 2004, which will be announced on Tuesday 7 September 2004.

 

The Group has made strong progress in the first half of the year.  Both of our operating divisions have traded well and we expect to be well above current market expectations for the full year.

 

At Menzies Distribution, a positive performance, in particular, from magazine collectables, events-driven stickers and weekend newspapers has resulted in strong trading. The Division has made significant investment in upgrading its branch infrastructure over the past three years, and the recent successful openings of new branches at Chelmsford, Essex and Bow, East London will further enhance our customer service offering.

 

At Menzies Aviation steady improvement has been visible in all regions, aided by more stable market conditions and some market growth. In addition, we are now seeing the benefits from streamlining the management structure. The UK, European and Latin American regions have benefited from cost reductions and contract wins, and the Asia Pacific region has performed well against a SARS-impacted 2003 comparative.  Our focus is to build on this improved performance and maximise returns from this business.

 

The Board is encouraged by the positive start to the year and expects favourable trading to continue, although this will be measured against stronger comparatives in the second half of the year.

 

"I am very pleased with the Group's progress so far this year. We continue to benefit from our increased focus on providing excellent customer service. The management teams at both of our operating divisions are successfully moving their businesses forward to drive shareholder value."

 

 

 

John Geddes, Head of Investor Relations, 0131 459 8186

 

Victoria Brough, 020 7638 9571