"Back on track" was how analysts at Numis greeted full-year results for John Menzies (MNZS), which provided some evidence that the group's strategy revamp is now bearing fruit. One particular highlight for the logistics group was its aviation division, which saw a 6 per cent increase in turnover in 2015, and has now resolved contractual issues at Gatwick Airport which suppressed profit in the period by £6m.
Given Menzies handles cargo for airlines at both of London's two largest airports, chief financial officer Paula Bell is agnostic on the eventual home of a new runway for the capital, although the group is keenly awaiting a decision that would lead to a boost in volumes. Outside of the UK, new hub contracts won in late 2014 contributed to a 20 per cent increase in revenue from the US, while a new deal to run Norwegian Air Shuttle's hub in Oslo has started successfully.
In the distribution business, a new initiative to offset declining newspaper and magazine sales by expanding into the UK parcel market is also progressing well, and contributed to a 5 per cent improvement in the division's underlying profit.
Broker Numis Securities forecasts pre-tax profit of £41.6m this year, giving EPS of 46.4p, up from £38.2m and 42.7p in 2015.
JOHN MENZIES (MNZS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 440p | MARKET VALUE: | £270m | |
| TOUCH: | 440-443p | 12-MONTH HIGH: | 525p | LOW: 357p |
| DIVIDEND YIELD: | 3.8% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 113p* | NET DEBT: | 173% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 1.90 | 52.5 | 71.8 | 24.0 |
| 2012 | 1.90 | 28.1 | 31.3 | 25.2 |
| 2013 | 1.91 | 42.1 | 50.1 | 26.5 |
| 2014 | 1.90 | 25.7 | 22.7 | 16.2 |
| 2015 | 1.90 | 18.2 | 16.5 | 16.8 |
| % change | - | -29 | -27 | +4 |
Ex-div: 26 May Payment: 1 Jul *Includes intangible assets of £108.3m, or 176p a share | ||||
