Menzies seeing effect of Sun launch

Menzies, which handles around five million newspapers and 2.1 million magazines each day, said the Sun on Sunday, priced at 50p, had taken share from the likes of the Sunday Mirror and Mail on Sunday, priced at £1 and £1.50 respectively.

The Sun on Sunday launched on February 26 following the demise of The News of the World in the wake of the phone hacking scandal at parent company News International.

However, in the overall newspaper market, sales volume decline was offset by strong cover price growth with some 12 titles increasing cover price during the six months to June 30. John Menzies’ distribution arm recorded broadly flat operating profits of £14m.

It said its aviation arm – which provides baggage handling services and recently overtook newspaper distribution as its biggest profits driver – saw earnings slightly increase to £14.5m.

The wider group reported broadly flat underlying pre-tax profits of £25.4m in the period, against £25.1m a year earlier.

Mike Murphy, analyst at brokers Numis Securities, said: “We continue to believe the growing aviation business will dominate the earnings profile underpinning a change in perception of the group to a business with good long-term growth prospects.”

Within the magazine category, monthly title sales fell 4.4 per cent, while weekly titles dropped 8.4 per cent.