11th May 2021 17:31
(Alliance News) - John Menzies PLC on Tuesday said it intends to raise GBP22 million through a combination of a non-pre-emptive placing, subscription and retail offer.
The aviation services provider said the price at which the placing shares are to be placed will be determined at the close of the bookbuilding process.
In addition, John Menzies said its directors and a limited number the senior management team intend to subscribe for new shares in the capital, alongside the placing, contributing around GBP5.3 million in total.
John Menzies also said the retail offer via PrimaryBid will raise up to GBP1 million. The offer will allow the company to take advantage of current market conditions to accelerate the delivery of its strategic objectives while also maintaining its commitment to reduce leverage, it added.
Separately, John Menzies said trading has been encouraging in the year to date, with underlying profitability ahead of previous management expectations.
"With passenger flight volumes remaining below 2019 levels across the group, this strong performance is testament to the cost savings programme delivered by the management team in 2019 and 2020, the ongoing contribution from governmental support schemes and the continued new business success being generated by the company's enhanced commercial focus," the company said.
John Menzies added that with encouraging signs of airlines rebuilding flight schedules, the board is confident that this momentum leaves the company well placed to meet or exceed management's underlying profit expectations for 2021.
"Our pipeline of acquisition and joint venture opportunities has accelerated in recent weeks and we now have some exciting opportunities to expand our network across all product categories. Current market conditions mean that adding these opportunities now, represents a compelling opportunity to create significant shareholder value," said Chair & CEO Philipp Joeinig.
"Our actions in recent years to restructure the business are already delivering improved profitability, despite aviation activity levels continuing to be well below pre-Covid 19 levels. This is very encouraging as we look towards our profitability in the years ahead," Joeinig added.
The stock closed down 3.4% at 310.50p on Tuesday.
By Arvind Bhunjun; [email protected]
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