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Take profits on Menzies

Take profits after an excellent run in the shares at distributor John Menzies, as the finance chief announces retirement and big restructuring charges are revealed.
January 30, 2013

Shares at distributor John Menzies (MNZS) have risen to record highs and we think it is time to book some profits, as the finance chief announces his retirement and the company reveals a chunky restructuring charge.

IC TIP: Hold at 703p

Paul Dollman has said he will not seek re-election at the company's next annual meeting on 17 May with chairman Iain Napier, adding: "Paul has done an outstanding job for John Menzies over the last 10 years". He will be replaced by Paula Bell, finance director at engineer Ricardo. Menzies also said that while full-year results will be in line with forecasts, the company will be hit by £18m in exceptional charges, which includes £7m for the closure of air-cargo handling operations in Chicago.

Broker Peel Hunt expects full-year adjusted pre-tax profits of £58m, giving EPS of 72.7p.