John Menzies plc, the time-critical logistics company, today issues a trading update ahead of its full year results for the year ending 29 December 2007, which will be announced on Tuesday 11 March 2008.

 

Trading performance across the Group has been positive.

 

Menzies Aviation continues to perform well, winning new contracts, securing new licenses and expanding both organically and through acquisition.

 

As anticipated, foreign exchange pressures, particularly from the weak US$ and soft cargo volumes are still affecting overall earnings.

 

2007 has seen excellent organic expansion across the network. Costs associated with these start-ups suppress earnings in the short term but leave the division well placed for 2008. The acquisition pipeline remains healthy and the division will continue to pursue attractive opportunities.

 

Overall the division remains well placed to deliver substantial profit growth in the current year.

 

Menzies Distribution continues to rationalise its operating model. Trading in the second half has been positive, supported by better than expected magazine sales during the summer months and additional business secured in the Chester and York areas.

 

Cost initiatives remain on track and new revenue streams, whilst still embryonic, continue to make progress.

 

The Board is pleased with progress made during the second half and Group performance for the full year is in line with our expectations. The Group has stabilised Menzies Distribution and continues to rapidly grow Menzies Aviation, and the Board looks forward to 2008 with confidence.

 

 

 

 

For further information contact:

 

Paul Dollman, Group Finance Director, John Menzies plc               0131 459 8018

 

John Geddes, Group Company Secretary, John Menzies plc            0131 459 8180