John Menzies plc, holding company of Menzies Aviation, has released its half year results, which show a decline in underlying operating profit of 14.4 per cent.
The Edinburgh based ground handling provider attributed the results to business losses, weak cargo volumes and the grounding of Boeing 737 Max aircraft
“The first half result was impacted by the loss of exclusive licences in H2 last year and generally weaker markets. To address this we have taken a number of decisive actions that we expect will improve H2 2019 and underpin our growth ambitions in 2020,” said Giles Wilson, CEO of John Menzies plc.
“We continue to drive a company-wide focus on cost reduction, customer engagement and operational discipline, with profitable growth at the forefront of our agenda. We have an increased awareness of our customers’ needs that will ensure that we are viewed by our customers as the partner of choice and recognised for our best in class operational delivery.”
There were some positives to be taken from the announcement, with revenue increasing £22.7 million from first half 2018, to £649.9 million.
The company also announced the implementation of a cost-cutting programme, which they say will save at least £10 million annually, although not until 2020.
“Looking forward, I continue to see clear opportunities to grow profitably. The structural dynamics of our markets remain strong in the medium and longer term,” added Wilson.
“We have excellent management teams in our business and cutting-edge systems that will enable us to deliver sustainable earnings growth, particularly as the market improves.”