Profits at John Menzies plummeted by more than a fifth this year as the slowing world economy took its toll on the company’s core business. Falling cargo and passenger volumes in the US and Europeled to a 22 per cent drop in half-year profits from £15.3 million to £11.4 million, from a year earlier.
The company is hopeful that a costcutting programme -particularly in the loss-making US business – and new operations in rising markets, such as India, will offset this.
“We think we can drive the business forward, despite the fact volumes are going backwards,” said finance director Paul Dollman. “We are not going forward as fast as we thought we were going to go, but we are going forward.”
Menzies Aviation, one of two divisions of the venerable Edinburgh company, now handles air cargo and ground services at over 100 airports worldwide. Revenues generated by aviation grew 30 per cent as the group won several ground-handling contracts and set up new cargo operations at airports in SouthAfrica, India and Scandinavia.