Partner Article

Menzies look on positive start to the year

A string of new contracts and and acquisitions have helped aviation services company Menzies to grow its first half pre-tax profits by 1%.

The Group say performance has been positive in the first six months of the year, as Menzie’s Aviation turnover increased by 2.3% to £340.2m.

A large contract win from British Airways saw Menzies recently start baggage handling for some 19,500 flights out of Manchester, Edinburgh and Glasgow.

On August 1 the Aviation division also acquired ground handling business, Flight Support UK, for an initial consideration of £4.75m payable in cash, with a further £0.5m payable over the next two years.

Elsewhere, the division acquired Romanian cargo handling outfit, Kamino Cargo, for £1.2m in cash.

In the newspaper distribution division, Menzies noted the launch of the Sun on Sunday has had a detrimental effect on the Sunday newspaper market, as it has a lower cover price than The News of the World, and has gained volume from other higher margin titles.

Underlying profit for the division was down from £14m to £13.7m, as volume decline was offset by cover price growth across some of Menzies key distribution titles.

The distribution division was also awarded a £12m, five-year contract with DC Thomson, who have outsourced their local newspaper distribution in Dundee and surrounding areas.

Iain Napier, Menzies Chairman, said: “I am very pleased to be announcing another good set of results in this uncertain economic environment. We have made significant investments in Menzies Aviation to support contract wins and acquisitions to add to the momentum of the
business and to generate further sustainable earnings.

“The underlying performance of the Group is good and our expansion plans remain on track. The resilient business models that we have in place at both operating divisions are allowing the Group to continue to grow.”

This was posted in Bdaily's Members' News section by Tom Keighley .