9th Mar 2021 12:42
John Menzies PLC - aviation services firm with headquarters in Edinburgh - Sinks to pretax loss of GBP120.5 million in 2020 from GBP17.3 million profit in 2019. Revenue craters 37% to GBP824.2 million from GBP1.33 billion. However, underlying operating cash flow improves 11% to GBP149.6 million from GBP134.9 million. Pays no dividend, versus 6.0 pence per share for 2019.
John Menzies says the results reflect the severe impact of passenger travel restrictions imposed in response to the Covid-19 pandemic - with the decrease in flight activity leading to a 49% year-on-year reduction in flight volumes in ground handling and fuel services.
Chief Executive Philipp Joeinig says: "The Covid-19 pandemic has brought about unprecedented challenges to our business as the effects on travel continued to have a significant impact on our global operations. Despite the difficulties it presented we acted decisively, adjusting the size of our operations and ensuring sufficient liquidity was maintained. We remain a strong business and well placed to benefit as the market recovers and the industry returns to structural growth.
"Looking forward we will continue to deliver against our strategic priorities. We are winning new contracts, entering new markets and optimising our portfolio. As flight volumes recover, I am confident that we will emerge as a more agile, resilient and profitable business with a sharply focused footprint and portfolio."
John Menzies says it anticipates a slow increase in volumes through the second quarter with a stronger recovery during the second half of the year. However, it currently does not anticipate a return to the volumes witnessed in 2019 before 2023.
Current stock price: 241.50 pence, up 2.8% on Tuesday
Year-to-date change: down 8.0%
By Paul McGowan; [email protected]
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