22nd Sep 2015 10:26
LONDON (Alliance News) - Journey Group PLC Tuesday reported a broadly flat profit in the first half of 2015, as revenue fell slightly due to a reduction in flight numbers and a weaker performance from its in-flight products division.
The provider of catering services and in-flight products for the airline and travel industries said that its pretax profit in the six months ended June 30 slipped very slightly to USD995,000 from USD1 million a year before, as revenue saw a small decrease to USD30.5 million from USD31.3 million.
Journey said that its Air Fayre division, which provides in-flight catering in the US, faced a challenging first half in Los Angeles due to an ongoing shift in the mix of the types of aircraft utilised by customers and due to adverse weather conditions, which reduced flight numbers. Revenue did rise slightly though to GBP20.8 million from GBP20.3 million.
It added that while it expects some recovery in flight and passenger volumes in the seasonally-weighted second half of the year, "we anticipate that the lower average number of flights and new mix of aircraft utilised will become the norm and will consequently impact the second half performance in Los Angeles".
The Watermark division, which provides other in-flight products on a global basis, saw a 12.2% decline in sales to GBP9.7 million from GBP11.0 million.
"We remain confident in the group's strategy with its two-pronged approach of providing our existing customers with an outstanding service whilst pursuing opportunities matched to our capabilities within Air Fayre," Chairman Stephen Yapp said in a statement.
Shares in Journey were trading down 4.2% at 169.10 pence Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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