Menzies(John) PLC

Trading Update

RNS Number : 5231G
Menzies(John) PLC
27 July 2021
 

27 July 2021

John Menzies plc

(the "Company" or the "Group")

 

Trading Update

 

John Menzies plc, the global aviation services business, today provides an update on current trading ahead of its Interim Results on 1 September 2021.

 

 

Overall, the Group continues to trade slightly ahead of current market expectations.  Regional variations exist with ground services in Europe particularly weak but this is offset by encouraging trading elsewhere driven by new business gains, a generally strong performance within air cargo services, extremely tight cost management and additional support from government schemes.

 

The Group's financial and liquidity position remains robust. At 30 June 2021, net debt was £183m on a pre-IFRS 16 basis, and total liquidity stood at £179m leaving the Group with significant headroom to allow us to deliver on our strategic priorities.

 

Commercially, the first six months of the year has been very strong and significantly ahead of last year. In May we commenced a new air cargo services contract for Avianca Airlines in Miami, USA, which is the largest single air cargo services contract the Group has ever secured. Operations have started very well and we are delivering enhanced service levels to our customer.

 

As outlined in our statement in May 2021, we continue to pursue our strategic priorities and have a number of business development opportunities in play.  In June 2021, we announced an investment to acquire a minority equity stake, by way of a joint venture, in JFreight Aviation Logistics Supply Chain Co. Ltd at Guangzhou, China. This venture, at one of the world's busiest cargo airports, will open in September 2021 and is our first significant venture in mainland China.

 

Further opportunities exist across all product categories with a good geographical spread. It is anticipated that we will make further announcements in the second half of the year as a number of these ventures complete.

 

For further information:

 

John Menzies plc

John Geddes, Corporate Affairs Director & Group Company Secretary

 

0131 459 8044

FTI Consulting

Alex Beagley/Fern Duncan

020 3727 1000

[email protected]

 

Notes

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation ("MAR") EU no.596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of MAR. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, the person responsible for arranging for the release of this Announcement on behalf of the Company is John Geddes, Corporate Affairs Director & Group Company Secretary.

 

Forward-Looking Statements

This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts and involve predictions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events, and depend on circumstances, that will occur in the future. Forward-looking statements may and often do differ materially from actual results expressed or implied in these forward-looking statements. Any forward-looking statements reflect the Company's  current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the business, results of operations, financial position, liquidity, prospects, growth or strategies of the Company, and the industry in which John Menzies operates. Forward-looking statements speak only as of the date they are made and cannot be relied upon as a guide to future performance. Save as required by law or regulation, John Menzies disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement.

 

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