Overview
Group underlying operating profit down 9% in constant currency - in line with revised expectations
o Distribution continues to be resilient and highly cash generative
o Aviation turnover growth of 9% at constant currency - profitability held back by start-up costs, operational and integration issues
Strong financial position
o Operating cash flow of £74.0m
o Net debt of £110.9m
Strategic refresh
o Distribution reshape in 2014 with clear business streams
o Review of Aviation business
Highlights attractive market growth dynamics
Confirms strong positioning
New approach focused on five strategic priorities, with a renewed emphasis on operational excellence
Dividend rebased to enable investment in growth opportunities
Jeremy Stafford, Chief Executive of John Menzies plc said:
"It has been a mixed year for the Group. Distribution has been resilient and we are pleased with the performance. Top line growth in Aviation has been strong, however earnings have been impacted by increased start-up costs and previously announced operational difficulties at London Heathrow. Although these issues are now largely resolved, this will impact the first half of 2015.
"After the challenges of 2014, our focus for 2015 will be on operational excellence and targeted growth. Our strategic refresh that we announced in November is now complete. While we continue to work on our detailed implementation plans, we now have a clear direction for the Group.
"As we move into 2015, we have excellent prospects in growing markets. There is much to do as we prepare for the next phase of the Group's development, and we do so with confidence."
