25th Mar 2014 15:36
LONDON (Alliance News) - Journey Group PLC Tuesday posted a rise in 2013 pretax profit as revenue was boosted by a strong performance in the company's US division and as it paired down and restructured its operations.
It posted a pretax profit of GBP1.8 million, up from GBP868,000 in 2012, as revenue rose to GBP40.3 million from GBP35.5 million, boosted by a strong performance from the company's US division, which was partly offset by a reduced contribution from the company's Products Division. US revenues were boosted by contract wins with Continental Airlines and JetBlue Airways.
The in-flight catering company sold its MNH Sustainable Cabin Services Ltd business in late November to focus on its two remaining business, Air Fayre and Watermark Products, which it is restructuring. It said that it had sold MNH as it was no longer providing synergies with the rest of the group.
Journey booked a loss from discontinued operations of GBP941,000, including an exceptional loss on disposal of GBP1.1 million.
The company is re-positioning Watermark Products to focus on opportunities in Asia Pacific, North America and the Middle East. It reorganised its board and Watermark's senior management, moves it expects to lead to yearly cost savings of about GBP700,000 by the second half of 2014, for one-off costs of GBP430,000.
It booked GBP114,000 of these restructuring costs in 2013, and the remainder will fall in 2014.
Journey posted a total dividend of 2.75 pence, up from 0.1 pence in the previous year.
Shares in Journey were trading up 3.5% at 156.28 pence Tuesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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