John Menzies scores thanks to adult football sticker fansComments Off on John Menzies scores thanks to adult football sticker fans
John Menzies today thanked adult football sticker collectors for a “positive” first half and sought to placate restive investors with a pledge to consider a break-up of the company.
The baggage handler and newspapers distributor said stickers sales during Euro 2016 helped it offset declines in print media, following a “renaissance” in collecting among the over-35s.
However, it warned costs at its distribution arm will rise £1.6 million in 2016 due to the National Living Wage.
It will accelerate cost cutting and look at changing overtime rates as a result.
Chairman Dermot Smurfit, appointed last month after pressure from an activist shareholder, said he will review the company’s structure over the next year.
Investors have questioned whether the aviation and distribution businesses sit well together.
First-half revenue was flat at just over £1 billion, while underlying pre-tax profit was up 6% at £18.1 million. The interim dividend rises 8% to 5.4p.
It expects to hit full-year expectations without the benefit from weaker sterling, which has so far boosted earnings by £700,000.