John Menzies posts sharp fall in pre-tax profits
Logistics and airport services group John Menzies has reported a sharp fall in first-half profits, despite boosting revenues over the period.
Revenue rose by 21% to £1.2bn, while pre-tax profit fell by more than 80% on the same period last year to £500,000.
Menzies attributed the fall largely to costs linked to an acquisition and an unsuccessful attempt to sell its distribution business to DX Group.
That deal fell through on Monday after the two firms failed to agreed terms.
Menzies said transaction-related costs amounted to £12.5m, including the acquisition of plane refuelling business Asig last year and work linked to the scrapped DX deal.
There were also costs and charges of £5.1m relating to its pension scheme.
The Edinburgh-based company said its aviation business had been boosted by the acquisition of Asig, with turnover exceeding that of distribution for the first time.
Distribution delivered a "slightly lower result", the company said, as a result of a drop in newspaper and magazine volumes and a lack of football-related sticker sales in the period.
Chairman Dermot Smurfit said the group was "trading well", adding: "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.
"Menzies Distribution remains a strong business, performing well despite cost and volume pressures."