8th Mar 2016 08:47
LONDON (Alliance News) - John Menzies PLC on Tuesday posted lower pretax profit and a slight dip in revenue for 2015 but said its strategy remains on track and, with legacy issues resolved, it remains optimistic on its outlook.
The support services group said its pretax profit decreased to GBP18.2 million from GBP25.7 million a year earlier, while revenue dipped to GBP1.99 billion from 2.00 billion in 2014. Profit for the group was hit by the operational issues involving a key contract at Gatwick Airport, which forced the group into a profit warning in November.
The aviation arm of the group, which provides passenger, ramp and cargo services, had to book a provision due to the troublesome Gatwick contract, but otherwise revenue in the aviation division increased, with a good performance outside the UK, strong cargo handling volumes, and ground handling hub contract wins secured.
John Menzies' distribution unit, which provides overnight logistics services, performed in line, with the restructuring of its distribution network completed and new contracts won in the wider logistics market, expanding its revenue base.
The company will pay an 11.8 pence final dividend, taking its total dividend to 16.8p, up 4.0% year-on-year.
"Our updated strategy for both divisions is now embedded and we are making good progress towards our stated objectives. However, 2015 was a challenging year for the group with operational issues at London Gatwick suppressing profits," said Iain Napier, John Menzies' chairman.
"The board is confident that we have strategies available to us in both of our operating divisions capable of delivering growth. We continue to evaluate the optimum structure for the group to potentially further enhance shareholder value," he added.
John Menzies shares were down 0.2% to 442.75p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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