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Selling this was tip of the week in this week's Investors Chronicle. Debt in danger of breaching banking covenants. Are shareholders going to want to throw good money after bad if MNZS comes cap in hand to the market?
Anybody got views for tomorrows results - appears likely to be a sell?.
I see RNSs concerning the "merger" with DX on the DX page, why do not Menzies issue RNSs? It's a £40M "sale" from a company valued at £600M & the deal is under threat because of a police investigation into DX, surely Menzies have a duty to announce such things?
Sorry about no messages, simply shows that the company is boring but stable. It would be nice if they made an offer for DX instead of trying to dump their distribution unit on DX.
-Is that it ?. There are many, many problems within the Aviation division with many, many of the companies Airline contracts looking weaker by the day. Nobody I know within the company (or within the Airlines now) speaks positively about this company. - The absolute mess that the previous senior management made of this company is woeful. The company is very top heavy from middle management upwards and the competence of current staff is so far removed from the competencies of the staff that used to work here. N.b - NOT a disgruntled former employee.
<b>Insider Buying: John Menzies plc insider Buys 5,000 Shares of Stock (MNZS)
August 24th, 2015</b>
John Menzies plc (LON:MNZS) insider Bell,Paula acquired 5,000 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The stock was bought at an average cost of GBX 450 ($7.05) per share, for a total transaction of £22,500 ($35,255.41).
MNZS has been the subject of several recent research reports. Numis Securities Ltd restated an “add” rating and issued a GBX 440 ($6.89) price objective on shares of John Menzies plc in a research note on Monday, August 17th. N+1 Singer reaffirmed a “hold” rating and set a GBX 494 ($7.74) price target (up previously from GBX 440 ($6.89)) on shares of John Menzies plc in a research report on Tuesday, August 18th. Finally, Panmure Gordon reissued a “hold” rating and set a GBX 416 ($6.52) price objective on shares of John Menzies plc in a report on Tuesday, August 18th.
Shares of John Menzies plc (LON:MNZS) opened at 428.2500 on Monday. The firm has a 50 day moving average price of GBX 501.68 and a 200 day moving average price of GBX 433.13. John Menzies plc has a 12-month low of GBX 306.25 and a 12-month high of GBX 628.50. The stock’s market cap is GBX 262.51 million.
The firm also recently disclosed a dividend, which will be distributed on Friday, November 20th. Stockholders of record on Thursday, October 22nd will be issued a dividend of GBX 5 ($0.08) per share. The ex-dividend date of this dividend is Thursday, October 22nd. This represents a dividend yield of 1.06%.
John Menzies plc is a United kingdom-based company, which provides support services in fast-moving, time-critical markets. The Company operates through two segments: Distribution and Aviation. The Distribution segment provides newspaper and magazine distribution services in the United Kingdom and Ireland along with marketing services. The Aviation segment provides cargo and passenger ground handling services across the world. The Company is engaged in activities, including ground handling, distribution, cargo handling and cargo forwarding. The Company’s distribution activities are focused in two sectors: the United Kingdom print media supply chain and the United Kingdom retail logistics and parcel delivery market. The Company’s subsidiaries include Menzies Distribution Limited, Menzies Aviation plc and Menzies Aviation Holdings Limited.
Sorry it is 'Lakestreet Capital' however the article I copied and pasted got the name wrong.
Lakeside Capital partners has issued a statement to shareholders in Menzies outlining it believes the company is “dramatically undervalued”, with a target potential equity value of £525m versus a current market cap of £220m. Lakeside has built a 3% stake in the business and “has committed itself to unlocking the intrinsic value of John Menzies…..and has constructively engaged in discussions” with the management team. The two points highlighted are the implementation of established methods to increase growth, and concerns over the operation of two separate businesses under the current structure. These discussions are expected to continue at the AGM in May. Our view remains there is transition underway at Menzies as it develops its growth strategy in both its Aviation and Distribution businesses. The shares are trading on a FY16E PE of 8x and have underperformed the market by 7% over the past month. +5.8% today.
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”.
Menzies hit by Heathrow terminal closures:
John Menzies said profits in the year ahead will be hit by the costs of dealing with the closure of terminals at Heathrow, as the airport services and newspaper distribution group reported a slump in annual pretax profits linked to “operational difficulties” at the U.K.’s largest airport. The Edinburgh-based company, one of the largest in Scotland, said the issues at Heathrow - which saw terminals closed during redevelopment - were now largely resolved but will continue to weigh on results during the first half of this year. The news sent the shares more than 5% lower. The airport services part of the company, which helps passengers, luggage and cargo to get on and off aircraft, is employing more staff at Heathrow to maintain a good service during the redevelopment. The “ground handling” division reported a 45% slump in operating profits during the 12 months to the end of December, despite a 4% increase in revenues after the firm won more contracts. The problems in the aviation division have already claimed Craig Smyth, Managing Director of Menzies Aviation, who left after a profit warning in November last year. ‘Annual results showed just how painful the difficulties in the aviation division had been, as they dragged the group’s reported pretax profits down by 40% to £25.7 million, from £42.1 million a year earlier. Menzies delivered group revenue that was flat at £2 billion. The risk to anyone considering Menzies’ shares is the £111 million net debt pile, up from £104 million in 2013, and the £59 million pension deficit, up £13 million, which stands against shareholders equity of just £69.7 million. Anyone buying the stock could be left with nothing if the debts can’t be serviced or repaid. At the moment that is not a problem, as the company generates plenty of cash and covers interest payments more than eight times. That said, things are getting tighter and broker Peel Hunt downgraded profit forecasts in the year ahead by 5%. Questor will wait until we have more evidence of take-off. John Menzies at 385p-22.25p. Questor says ‘Hold”.
-Surprised at all if you worked or knew senior people at Menzies who know this company is in a boat with holes.
Well, what can I say. I'm surprised.
It's taken a few months but am Now Fully invested - Apr 14 High Nov 14 Low Apr 15 High? As always DYOR but all the ingredients are here!
Because there is no such thing as buys and sells, only trades.
For every buy someone needs to sell the shares. People misconstrued ‘buys’ and ‘sells’ as the agreed trade price being closer to the bid or the offer. So on my screen blue means the trade was closer to the offer than the bid and red means it was closer to the bid than the offer. Hargreaves Lansdown takes this information and say it as either a ‘buy’ if the trade was blue and a sell if it was red. They then attribute a percentage to them and say ‘there were 80% buys yesterday’. All that really means is that 80% of the trades were closer to the offer at the time of the trade than the bid. It’s misleading…
The only thing that controls price is the bid and offer spread. You could theoretically have 100% buy according to HL but the share price go down. All that would need to happen is that the offer would be lowered from the open and the trades being made are closer to the offer than the bid.
Can someone explain to me how on a day when buys are outstripping sells 8:1 , this share manages to end up down on the day, when the market is generally up. I've been very patient with this share but I'm becoming a touch suspicious and just a little bit ****ed off.
Thoughts might be of interest to others.
Big Volume today. just had two big trades at 260'000 shares each and pretty much at yesterdays total volume already. II's are making decisions today.
Personally I think the debt isn't that high and MNZS generate enough cash to cover the dividend. I'd be surprised if it's not maintained.
Heathrow was unfortunate but I see it as a one off rather than a trend. If they continue to disappoint then the best option is to sell. I've read estimates of 400mil in this case which indicates a SP of 650p.
in both the worst case (sale of the business) and best case (recovery) scenarios, this is undervalued.
the media distribution division has provided the cashflow to sustain the growth of the aviation division. now the latter is considerably larger than the former. the lack of deleveraging suggests that previous management were unwilling or unable to do so. at weaker margins this introduces risk. sustained growth is important elsewhere in the world to offset the evident difficulties at Heathrow. i believe that it would be prudent to pare back the dividend to strengthen the balance sheet.
Agreed Z666M, this is very cheap. The core business of Newspaper delivery may be declining but they have in place a 7 day distribution network covering all London and the south and east, North of England, all of Scotland and all of Ireland. It's just a short step to becoming a major force in the B2B distribution market. All supported by their future-proof Aviation support division.
8% yield that's well covered & investors not pricing in the possibility of growth. This is cheap.