After posting robust half-yearly profits, the Edinburgh-based aviation and newspaper distribution group, John Menzies, anticipates the yearly results to get boosted up more than the market expectations.
The half-yearly profits of the group rose 46.2% to £19.3 million, thanks to higher cargo volumes and strong sales of World Cup 2010 stickers. The rise in the revenue was 12.5%.
On account of the increase in the half-yearly pre-tax profits, the group projected the full-year profits to reach £41.7m, on revenues of £1.8 billion, beating the forecast of analysts.
The group’s both divisions -- Menzies Aviation and Menzies Distribution -- performed well during the past half-year. The profits of Menzies Aviation climbed up to £9.1m from £4m and that of Menzies Distribution advanced 6.6% to £14.5m. The share price of John Menzies closed up 6.5% at 441p. This year, its stock have surged 47% till now.
The aviation division is motivated due to the onset of cold in northern Europe, thus increasing the demand. In the first half, it got 56 contracts and lost 16. Also, the volcanic eruption in Iceland, which left an adverse effect on European air space, brought losses of around £2.5m to the division, as told by the Finance Director, Paul Dollman.
John Menzies declared to give a 5p interim dividend, this year and they are also considering raising this payment to 15p by the year end.