Menzies reports profit growth in first half of 2018

posted on 14th August 2018 by Justin Burns
Menzies reports profit growth in first half of 2018

Menzies Aviation has reported improved financial figures for the first half of this year as its underlying operating group profit before tax increased by 15.4 per cent to £28.5 million (2017: £24.7 million).

For the period from January to June 2018 the underlying operating profit rose nine per cent to £23.7 million and turnover increased by 4.5 per cent to £1.25 billion.

The ground handler said its performance was boosted by new contract wins and renewals, investment in staff and business processes and a surge in cargo volumes.

Menzies said the second half of the year started well with ground handling turns in the key summer months in line and cargo volumes delivering good returns and added it was on track to meet its full-year expectations, with trading since the half year in line.

Meanwhile, Menzies Amsterdam has renewed contracts with two key customers – FedEx and Kalitta Air. FedEx has renewed its long-standing ramp and cargo contract, and Menzies will continue to handle daily freighters into Amsterdam Airport Schiphol (AMS).

US-based cargo carrier Kalitta Air also renewed its contract for ramp handling at AMS, in addition to moving their cargo handling from Swissport to Menzies. This will increase efficiency, with all AMS services for Kalitta Air provided by Menzies.

Kalitta Air operates services twice a week from AMS to New York JFK, specialising in outsized cargo such as helicopters and oil and gas equipment.

Last month, Menzies sold off its newspaper distribution business to private equity firm Endless LLP for £74.5 million.

In the UK, the Competition and Markets Authority (CMA) has also launched a probe into the Menzies’ purchase of aircraft de-icing specialist Airline Services in April this year.