Listen to this article
This is an experimental feature. Give us your feedback. Thank you for your feedback.
What do you think?
Logistics and airport services group John Menzies said it expects to make a firm announcement on how it will split up its aviation and distribution arms alongside its full year results in March.
The Scottish group, which pulled out of a deal to sell the distribution business to DX Group in August, said Rothschild was helping it determine “the optimum route to split the Group and create two strong focused players in their respective markets”.
At the time the deal collapsed, Menzies said it still believed there was “strategic merit” in separating its aviation and distribution divisions. Although the distribution business was once its mainstay, it has struggled with the decline of print media and attempted to diversify into other areas, including parcel delivery and logistics services for retailers.
“We expect to be able to make a firm announcement on the process to be followed by the time of our full year results in March 2018″, it said.
Menzies also said it had continued to trade well since its half year results and was confident of meeting full year expectations, but positive underlying trading had been hurt by one-off events, including the series of airline collapses in Europe over the summer and Hurricane Irma, which would continue to have an impact on its operations in St Maarten into next year.
It said the integration of plane refuelling business ASIG, which Menzies took over in a $202m deal earlier this year, was progressing. “Milestones are being met and we are confident that the full year synergy target will be exceeded.”