12th Nov 2013 08:13
LONDON (Alliance News) - John Menzies PLC Tuesday issued a full-year profit warning, as the logistics group lowered expectations for its struggling magazine and newspaper distribution arm.
John Menzies shares were down 7.3% at 760.00 pence shortly after trading commenced Tuesday.
"Magazine and newspaper volumes have tracked at the levels announced at the time of our interim results. However, disappointing returns from ancillary revenues, sticker collections and weaker-than-forecast seasonal sales within the marketing services business are expected to impact the second half result," the Edinburgh-based group said in a statement.
It added that most of its publisher contract renewals are mostly complete.
But it wasn't all doom and gloom for John Menzies, as the company also said it has won a five-year contract through its aviation business to handle ground logistics for Hong Kong-based airline Cathay Pacific at five locations in Australia and New Zealand. John Menzies said its aviation arm is performing well on a constant currency basis, with the overall outlook remaining positive.
"This major contract win helps to underpin future revenue streams and will balance expected yield pressure forecast into 2014," John Menzies said.
The contract win follows the acquisition of competitors Desacol and Skystar in August 2013. Both of those companies are performing well, according to John Menzies.
By Samuel Agini; [email protected]; @samuelagini
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