Issuing a trading update ahead of March full-year results, the group said overall trading during the latter part of the fourth quarter had been in line with board expectations.
Menzies told investors: “Despite the impact of changing travel restrictions related to the Omicron variant, the business saw strong performance across a number of service lines which, together with continued productivity gains, saw the group The year will end strong.
“Cash generation has also remained positive, with the group maintaining a strong liquidity position and year-end net debt in line with expectations.”
Bosses also noted “excellent” business performance with more contracts won and renewals.
“Looking ahead to the year ahead, we remain confident in our current projections for a continued recovery in global flight volumes,” they added.
The group said it would switch its reporting currency to US dollars from pounds, noting that the percentage of its services provided in the UK has fallen significantly and now accounts for just 11 per cent of total revenue. Consequently, the financial results for March will be presented in dollars.
In late November, Menzies highlighted his resilience in the face of tighter global travel restrictions, emphasizing that less than 10 percent of his business is related to long-haul passenger flights.
The firm said full-year trading would be at least in line with market expectations after a better-than-expected performance in recent months.
It noted that, globally, the air cargo services market remains strong and was seeing a steady increase in aircraft movements in all regions, supporting a continued recovery in its ground services and bunkering businesses. .
Menzies Aviation operates in more than 200 airports in 37 countries, supported by a team of 25,000 people.
Despite the negative impact of the pandemic on the global aviation industry, the company has sealed a number of contract renewals and new business wins in the last two years.
The November update pointed to some challenges facing the business, including labor availability, particularly in North America.
Robin Speakman, an analyst at brokerage Shore Capital, said: “We see strong evidence in Menzies’ performance over the past year of the continued evolution of the business into a changing market, accelerated by the pandemic.
“Significant progress has been made in cost management, in our view, with long-term sustainable gains. Menzies also achieved more contracts and renewals with resurgent development in cargo operations, which we also expect to continue. It seems to us that the impact of a new wave of Omicron on the pandemic has been well managed.”
John Menzies got its start in 1833 when its namesake founder opened a bookshop at 61 Princes Street, Edinburgh, which would become the only wholesale bookshop north of the border.
The newspaper and magazine distribution business was spun off in 2018, creating Menzies Distribution and leaving the rest of the company to focus on providing aviation services.
Edinburgh aviation services giant Menzies is ‘resilient’ as Omicron unleashes new bo…
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George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.