John Menzies profits flying high

By DOMINIC JEFF
Published on 14/08/2012 10:26

JOHN Menzies, the Edinburgh-based distribution and aviation services group, managed to grow profits in the first half despite weakening revenues and adverse currency movements.

Underlying profit before tax rose 1 per cent to £25.4 million, but the group said the rise would have been greater on a stable currency basis.

Group revenues were down around 2 per cent to £990m, as lower magazine sales affected its distribution arm.

The firm said its aviation division continued to grow, with contract wins from global carriers such as British Airways and operations beginning in two new countries.

Finance director Paul Dollman said that, without currency impacts, profit growth would have been in the firm’s 10 to 15 per cent target range.

He added: “It’s all being driven by contract wins.”

The group is retrenching its cargo operations, reducing costs by closing down bases at four airports, including Glasgow, to concentrate on Aberdeen, Belfast and Heathrow.