AISG acquisition sends profit skyward for Menzies
Logistic and support service group John Menzies said that despite a strong showing by its aviation wing, profits had slipped in the first six months of the year due to a difficult run for its newspaper distribution division.
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John Menzies Plc
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Menzies had previously made plans to dispose of its distribution division; however, plans to do so were abandoned on Monday as it was unable to come to agreeable terms with DX Group.
The company posted underlying profits of £24.7m, a 36% rise on the same time last year, but after a series of charges, the firm's pre-tax profits dwindled to £0.5m from the £3m it reported in 2016.
In parallel, turnover increased 21% to £1.22bn thanks to the acquisition of AISG in February which provided a significant boost to Menzies's aviation division. AISG and Menzies supply airport services like cargo handling and passenger transport to 213 airports around the globe.
As of 30 June, net debt was £235.4m, a significant increase from the company's £126.6m debt pile at the end of the comparable one year ago. Menzies stated that rise in debt was mostly a reflection of the AISG acquisition.
Cash and cash equivalents were said to be £67m and earnings per share were listed at 47.8p.
Chairman Dermot Smurfit said: "Menzies Aviation continues to go from strength to strength. The recently acquired ASIG business is integrating well and generating many opportunities for growth. Within the rest of the business contract win momentum continued and we are benefiting from our investments into infrastructure and innovation."
As of 1425 BST, shares had bumped up 2.77% to 727.50p.