At the Annual General Meeting of John Menzies plc today, William Thomson, Chairman, made the following statement:

 

"Trading performance across the Group continues to be in line with our expectations as updated in our Preliminary Results announcement of 21 March. 

 

"The current weakness in the magazine and partworks markets is still affecting Menzies Distribution.  Cost control remains a priority and we are implementing a range of initiatives to address the current market challenges. We have also recently announced the acquisitions of Chester Independent Wholesale Newsagents and North West Wholesale News, which are useful additions to our network.

 

"The Office of Fair Trading is expected to issue a new draft opinion on the distribution arrangements for newspapers and magazines shortly, with a view to publishing its final opinion in the autumn.  We look forward to its conclusion.  Whatever the outcome, we intend to continue our focus on delivering excellent customer service.

 

"Menzies Aviation has started the year positively and as planned we are increasing our investment in this division.  We continue to pursue and deliver both organic and acquisitive growth across our global network. The division recently concluded successful bids to provide cargo handling services at two new Indian airports - Bangalore and Hyderabad - which are scheduled to open early in 2008. Our acquisition of Aeroground Inc, which provides cargo handling services in North America, was completed earlier this month and is expected to be earnings enhancing this year."

 

Contact:

Investor Relations, John Menzies plc	0131 459 8018
Ginny Pulbrook/Anthony Kennaway, Citigate Dewe Rogerson	020 7638 9571

 

 

 

1.	John Menzies plc, the time-critical logistics company, is one of Scotland's largest companies. The company has two operating divisions, Menzies Distribution and Menzies Aviation. Both divisions operate in distinct B2B sectors where success depends on providing an efficient, high quality, time-critical service to their customers and partners.
2.	In the year ended 31 December 2005, John Menzies reported turnover of £1,390.0m (2004 - £1,369.2m) and headline profit before tax of £39.4m (2004 - £33.6m). Turnover at the Distribution division was £1,104.3m (2004 - £1,109.4m) whilst operating profit was £30.7m (2004 - £30.5m).  In the Aviation division turnover was £285.7m (2004 - £259.8m) and operating profit was £13.3m against £10.3m in 2004.
3.	The company was established in 1833 and its head office is in Edinburgh, Scotland. Today the company is an international operation with businesses in Europe, North and South America, South East Asia, Australasia and Africa.
4.	Menzies Distribution is a leading provider of added value distribution and marketing services to the newspaper and magazine supply chain in the UK. The division handles 4.5 million newspapers (6 million on Sundays) and 2.5 million magazines (covering 3,000 magazine titles) each day, with deliveries to more than 21,300 customers.   Its success in 2005 in achieving high standards is evidenced by winning the 'Wholesaler of the Year' award from the National Federation of Retail Newsagents and the Gold award at the Association of Circulation Executives awards.  It also won the Orange Award for Bright Business at the National Business Awards for Scotland for its Launch Factory marketing initiative to maximise sales of new titles.
5.	Menzies Aviation is one of the world's major independent suppliers of ground handling services to the aviation market providing passenger, ramp and cargo services for many of the world's leading airlines and some of the busiest international airports. The division employs some 12,000 people across the world, at 98 airports in 23 countries servicing more than 500 aviation customers.   The Division won various awards in 2005, including the 'BA Way' award for the handler which most closely matches the way BA wants its outsourced handling performed and the 'Most Responsive Handler' award also from BA for the way in which it helped restart their operations at Houston after Hurricane Wilma.
6.	Further information on John Menzies plc can be found at: www.johnmenziesplc.com, www.menziesdistribution.com and www.menziesaviation.com.