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Good progress across group

Menzies back in growth with sharp profits rise

Menzies, the Scottish logistics company, has unveiled underlying profit before tax for the year up 30%, or 17% in constant currency, as chairman Dermot Smurfit hailed a return to growth.

Dr Smurfit (pictured), who succeeded Iain Napier at the helm of the Edinburgh-based group last June, said: “I am pleased to report good progress across the group as we continue to build on our strategic objectives in both divisions.

“We have announced a strong set of results and believe we are back on track after a period of underperformance.

“The group has started the year well. The underlying Aviation business is continuing to trade positively with contract momentum continuing and a strong pipeline of opportunities.

“We have completed the acquisition of ASIG and are very excited about the opportunities ahead of us. Our integration plans are on track and we will look to take advantage of our extended footprint and product offering that exists as we look to further strengthen the Aviation business.

“At Menzies Distribution the softer magazine volumes experienced in Q4 2016 have continued. Our focus remains on cost savings and finding new volume through retail logistics where our national coverage provides us with previously unexploited opportunities and neutral consolidation in the parcel market where we will look to build scale during the year.

“Overall the Board is confident with the Group’s outlook for 2017 and will look to capitalise on opportunities in both divisions.”

Overview

·    2016 was a transformational year for the Group

·    Clear strategy delivering growth

·    Underlying profit before taxation up 30% to £49.7m (up 17% in constant currency)

·     Exceptional items in operating profit were £18.4m (2015: £10.5m) comprising transaction related costs (£8.8m) and asset write down (£9.6m)

·     Favourable exchange rates further enhanced earnings

·     Well supported rights issue to part fund the acquisition of ASIG

·     Proposed final dividend of 13.1p giving a total dividend of 18.5p for the year, up 10%

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