‘Sale process’ for Menzies Distribution ‘underway’

Edinburgh-based aviation logistics and news distribution company John Menzies plc said on Tuesday a “sale process” for its Menzies Distribution business “is underway.”

Menzies terminated merger talks between its distribution business and courier firm DX Group last year.

Menzies has undergone a turbulent few years with shareholders putting pressure on the firm to split into two separate avaiation and distribution companies.

The update on the distribution business came as Menzies announced its 2017 results.

Menzies said its 2017 turnover rose to £2.5 billion from £2.07 billion and underlying profit before tax grew to £67.1 million from £49.7 million following a strong performance from Menzies Aviation and favourable foreign exchange translation.

Menzies’ profit before tax rose to £26.7 million from £19.8 million and underlying earnings per share rose to 57.2p from 47.8p.

Menzies chairman Dermot Smurfit said: “I am delighted to again report a positive set of results.

“At Menzies Aviation we completed and are successfully integrating the group’s largest ever acquisition which after a period of stabilisation offers exciting growth opportunities.

“Overall, the business has performed well with many new contracts gained and we continue to invest in our people and systems in pursuit of our excellence manifesto.

“I am very pleased that despite a number of distractions Menzies Distribution produced a solid performance, holding underlying profits flat in the face of declining volume and increasing wage costs.

“We continue to make good progress on our separation plans and a sale process for Menzies Distribution is now underway.

“The board is focused on creating a global pure play Aviation Services business and is excited by the opportunities that presents.

“We have a strong management team who are delivering against our strategic objectives.

“We are a very well placed, well-funded group operating in a structural growth market and we look to the future with confidence.”