Firm remains upbeat
Menzies swings to loss as aviation crisis hits
Aviation traffic has slumped
Cargo handling firm John Menzies reported a £120.5m annual loss against a profit of £17.3m last time as the crisis in aviation ripped through the business.
Revenue was down 37% in constant currency, with the decrease in flight activity leading to a 49% year on year reduction in flight volumes in ground handling and fuel services.
The Edinburgh-based company’s board said that despite the severe downturn in aviation it is confident about the group’s long-term outlook.
Despite the crisis it said it was well placed to prosper as the aviation sector gradually recovers.
“We have a clear strategy in place, based around our strategic priorities and we believe this disciplined approach will deliver sustainable growth in the future.”
Philipp Joeinig, chairman and chief executive, said: “The Covid-19 pandemic has brought about unprecedented challenges to our business as the effects on travel continued to have a significant impact on our global operations.
“Despite the difficulties it presented we acted decisively, adjusting the size of our operations and ensuring sufficient liquidity was maintained. We remain a strong business and well placed to benefit as the market recovers and the industry returns to structural growth.
“Looking forward we will continue to deliver against our strategic priorities. We are winning new contracts, entering new markets and optimising our portfolio.
“As flight volumes recover, I am confident that we will emerge as a more agile, resilient and profitable business with a sharply focused footprint and portfolio.”
Shares in early trade rose 4.3% or 10p to 2344p.