Aviation problems hit firm
Menzies profits fall, but dividend up 4%
Underlying profit before tax fell to £38.2 million (2014: £44.6m) as a result of the decline in profitability in the aviation division. Turnover was flat at £1.993 billion (2014: £1.999 bn).
The decline in underlying profit before tax had a consequential impact on underlying earnings per share which decreased to 42.7p (2014: 49.2p). Profit before tax was £18.2m (2014: £25.7m).
Chairman John Napier said: “Our updated strategy for both divisions is now embedded and we are making good progress towards our stated objectives.
“However, 2015 was a challenging year for the Group with operational issues at London Gatwick suppressing profits.
“Outside of the UK, the Aviation business continued to make progress, particularly in cargo handling and North American ground handling. Menzies Distribution performed strongly, whereby print media decline was fully mitigated and our expansion into the e-commerce fulfilment market gained real traction with the acquisitions of AJG Parcels and Oban Express, and a number of new contract wins.
“The board is confident that we have strategies available to us in both of our operating divisions capable of delivering growth. We continue to evaluate the optimum structure for the group to potentially further enhance shareholder value.”
The board said it wants to follow a progressive policy to increase dividends over time. It has proposed a final dividend of 11.8p per share which is payable on 1 July, making a total for the year of 16.8p per ordinary share up 4% from last year (2014: 16.2p per share).