LONDON (Alliance News) - Distribution company John Menzies PLC on Friday said it is trading in line with its expectations in the first four months of 2015 and left open its options regarding talks with an activist shareholder.
Menzies Aviation revenue grew 8% in constant currencies in the period, boosted by a 10% rise in cargo volumes and a 16% increase in ground handling turns, reflecting the momentum the business has secured in winning new contracts. Like-for-like ground handling turns rose by 5% in the period.
The Menzies Distribution business is on track, the company said, with the volume decline in print media slowing in the period and the group pursuing more opportunities in the e-fulfilment market.
Elsewhere, the company left its options open with regard to the talks the company has started with activist shareholder Lakestreet Capital Partners AG. The pair entered into talks in April with a view to boosting its revenue and profit margins and over plans to potentially break up the business.
"We encourage an open and proactive dialogue with all our stakeholders. In reference to recent public statements the board remains committed to maximising shareholder value and evaluates all options, including its corporate structure on a regular basis," the company said in a statement.
Lakestreet Capital owns a 3% stake in John Menzies, according to Morningstar.
"I am pleased with the progress that we are making against our strategic objectives. We are deepening our customer relationships, we have a number of initiatives underway across the group to improve efficiency and we are driving standardisation across the group," said John Menzies Chief Executive Jeremy Stafford.
Shares in John Menzies were up 1.6% to 411.375 pence on Friday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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