II Editor
15 May 2015
NEW ARTICLE: Break-up candidate John Menzies in demand "Wounds from LSE:MNZS:John Menzies' November profits warning are healing, and the Scotland-based firm's share price has since clawed back half its losses. Amid requests for the company to split itself in two, a trading update reveals that its ..."[link]
nk1999
02 May 2015
Telegraph- Questor From yesterday:"John Menzies may be a break-up target but should investors take flight?: Aviation services and print distribution group John Menzies has attracted the attention of an activist investor, with Lakestreet Capital Partners questioning the wisdom of the company’s set-up as a mini conglomerate. Troubles at Heathrow and the loss of international contracts led to a profit warning in November, which sent the company’s shares into a nose-dive, bottoming out at 317p. John Menzies at 390p +27.5p Questor Says “Hold”."
JimmyZoid
30 Apr 2015
Re: Investor in talks Hmm - its an interesting one in that the distribution business is in a process of managed decline yet throws off cash for investing in the aviation business.However, I suspect that the aviation business should stand on its own two feet and reinvest its own cash - and the distribution business could run as a cashcow to its shareholders.The former may improve governance over debt. acquisitions and cap-ex leading to better investment decisions. The latter is at risk of finding another way to spend money which really should be returned to shareholders...That said definitely undervalued
1gw_ii
30 Apr 2015
Re: Investor in talks Well done Lakestreet. Menzies has been crying out for this for years - how on earth do analysts put a sensible overall multiple on a combination of 2 such different businesses. The Aviation business could really fly (IMO, pun intended) if separated and they ought to do it before financing costs go up. It's a shame it's taken a hiccough in the business and a collapse in the share price to get to this stage, but better late than never.The question will be whether they can get enough shareholder support to have the board take them seriously. The board appeared dead set against a split in the past and even went so far as to comment on not wanting a split when they appointed the new CEO I think.But now, with a new CEO and an activist shareholder, and I hope some other big shareholders encouraging them behind the scenes, perhaps it could actually happen.
Hydrogen Economy
30 Apr 2015
Investor in talks Reuters reporting an investor being active, sounds like pushing for spin-off of some businesses. With only 3%, not sure they have the clout, but SP reacting nicely. [link] - Lakestreet Capital Partners AG, an investor in John Menzies Plc, said it was in talks with the company's management to improve revenue performance and profit margins.Lakestreet, a top 10 investor in the company with a 3 percent stake, said it had raised concerns about whether keeping two non-synergistic businesses in one group was still in the best interests of the company's shareholders.John Menzies has two divisions - a newspaper and magazine distribution business and an aviation support services unit that runs VIP lounges and handles ticketing, check-ins and aircraft de-icing.The Scottish company has been trying to expand its aviation support business to shore up profits as dwindling demand has stymied the growth of the distribution unit.John Menzies started as a chain of newsagent shops and was the Scottish agent for the monthly instalments of Charles Dickens' first novel - The Pickwick Papers.However, the company said last November that the loss of some British Airways business at Heathrow, as well as contract losses in Colombia would hurt the results at its aviation services unit this year.Lakestreet, which first bought shares in John Menzies in the third quarter of 2014, said the talks with the management are expected to continue ahead of the annual general meeting on May 15.Shares in John Menzies were up 2.8 percent at 372.50 pence at 0758 GMT on the London Stock Exchange. The stock lost half of its value last year, underperforming the FTSE-250 by more than 50 percent.
FRTEB
15 Apr 2015
Asleep on the job I heard about this on the news but only found out today that the "worker" (ha!) is an employee of Menzies: [link] exactly good publicity...
Hydrogen Economy
11 Mar 2015
Re: Thoughts.... JZAlso surprised we did not see more of a hit at the dividend 'rebasing', especially on such a gruesome day in the wider market - perhaps a good day to bury bad news! I guess it was factored in and it leaves a respectable yield of 4.2% which it should be possible to grow from here. Holding 26p div would not have been covered by earnings, although with free cash flow of 48p and the big exceptional hit on EPS that might have been OK for one year so div cut does not help confidence that the worst is over.Many moving parts here and the big exceptional charge makes it a little difficult to call, the PE is 17.6 reported or 7.9 underlying, the reality is in there, somewhere. I bought in recently as a recovery play, I'm happy to keep my (small) holding for now and watch how the strategy plays out, they seem to have some interesting opportunities in aviation as long as no more hiccups, offsetting the pressures in distribution. H2
JimmyZoid
10 Mar 2015
Thoughts.... Although I shouldn't be I am surprised by the dividend cut, particularly because of the good cash flow. I guess it is a case of new CEO clears the decks.There is some good news- 60 net new contract wins- Big wins in USA plus Norweigian- 5 year renewal of Easyjet..There is also quite a lot of jam tomorrow to chew through here - and hopefully a more thoughtful approach to acquisitions and growth.I would be interested to hear others' thoughts plus broke comment....Given the dividend cut (ahem or is it a rebasing!) I think the SP has held up reasonably well... though I guess it has quite a lot of bad new priced in....Thoughts?
gamesinvestor
26 Feb 2015
Re: Huge """when is the ex-div date ?""""The ex-dividend date for the final dividend last year was 21st May 2014.This year will be somewhat similar but it hasn't been announced yet.Games
sage in the hills
18 Feb 2015
Re: Huge when is the ex-div date ?SAGE
JimmyZoid
12 Feb 2015
Re: Huge Cheeky! And in the meantime enjoy the dividend on the way....
FRTEB
12 Feb 2015
Re: Huge "...and the SP can start recovering."Keep up at the back! The sp has been in an upward trend for a while. And long may it continue.
JimmyZoid
12 Feb 2015
Huge Enormous volume today - approx 10% of shares traded - equivalent to the remaining Schroder's holding.If this is the case then the overhang in the market must surely have been dealt with and the SP can start recovering.
FRTEB
27 Jan 2015
Re: Trading update The sp is gradually recovering - there is an upwards sloping line of support clearly showing on the chart. Slow and steady as she goes...
JimmyZoid
26 Jan 2015
Re: Trading update So it seems as thought the Heathrow contract issues were isolated, though material, and the rest is on track. That to me seems optimistic that the dividend will be held and once Schroders stops dumping shares the SP will recover.I note that there is another institutional investor (Premier) taking a position - so lets hope this will begin to move - initially back to 4.50 and then with some new wins and decent strategic review up from there...
