20th May 2016 06:51
LONDON (Alliance News) - Support services company John Menzies PLC on Friday said it has made a good start to 2016 and trading is in line with its expectations.
Menzies said its Aviation business has seen revenue grow 7.0% in constant currencies in the first four months of the year from a year before. Ground handling rates grew 4.0% thanks to contract wins, though cargo volumes are down 2.0% against a strong comparative for the prior year.
Menzies said it has secured new contract wins in the Aviation arm with British Airways in Copenhagen and with Virgin America at its hub in Los Angeles and also secured preferred supplier status with Singapore Airlines.
Menzies Distribution, meanwhile, saw print media sales decline 4.0%, in line with the declines seen in 2015.
Menzies said it is making progress on evaluating its structure going forward against the potential opportunities to expand its divisions, in addition to being "mindful" on its obligations to its pension scheme. To that end, the company has appointed additional pension advisers to work with its existing team and has started exploring options. It said it will provide an update on this by year end.
"2016 has started well across the group and we continue to progress our growth strategy across both divisions," said Chairman Iain Napier, who will retire after Friday's annual general meeting after eight years at the helm. Dermot Jenkinson, currently a non-executive director, will become interim chairman and will run the process to appoint a permanent successor to Napier.
The company will post interim results on August 20.
By Sam Unsted; [email protected]; @SamUAtAlliance
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