Updates and Ideas

Menzies (John) - Further eps upgrades drop prospective PE to just 7.1

October 2021

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

When a particular sector is out favour, good shares get sold indiscriminately alongside the bad and this is the case with John Menzies, which provides ground handling, cargo and aircraft fuelling & storage services. The former had generated around two thirds of sales pre-pandemic and clearly some investors are still nervous with concerns over rising Covid cases and new variants. However, I met with management again following interim results on 1 September and there are multiple reasons to be more optimistic, while broker Berenberg has lifted eps forecasts by 4-15% between FY’21-’23 for new earnings per share of 23.9p, 41.1p and 45p.To recap, Menzies provides a full range of ground handling services, such as pu ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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