John Menzies the aviation services provider has reported a pre-tax loss in the first half due to the impact of headwinds in the aerospace industry.
In the six months to 30 June the company swung into a loss before tax of £4.4m, compared to a profit of £8.3m in 2018 for the same period.
Revenue in the aviation service provider was up by 3.6% to £646.9m.
Chief executive Giles Wilson said Menzies had taken “decisive actions” to address issues to reduce costs and are on track to deliver £10m of savings by 2020.
Wilson said, “We have an increased awareness of our customers’ needs that will ensure that we are viewed by our customers as the partner of choice and recognised for our best-in-class operational delivery.”
John Moore, senior investment manager at Brewin Dolphin said, “It is an increasingly tough environment for many businesses in aerospace and related sectors – weak consumer confidence is impacting travel plans, trade tariffs are reducing the exchange of goods, and fuel costs have been higher on average this year.
“Notwithstanding these challenges, John Menzies is a solid business and is responding to the difficult environment with cost-cutting and restructuring programmes that should help it weather any further storms.”
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