Menzies(John) PLC Trading Statement: John Menzies plc (2744E)
27 February 2020 - 6:00PM
UK Regulatory
TIDMMNZS
RNS Number : 2744E
Menzies(John) PLC
27 February 2020
27 February 2020
John Menzies plc
Update on Impact of COVID-19
John Menzies plc, the global aviation services business, today
provides an update on current trading.
As set out in the trading update of 28 November 2019, the Group
made significant progress during FY19 in establishing a platform
for long term, sustainable growth. The actions taken to right-size
the business and reduce overheads during 2019 are delivering
benefits.
Our focus on operational discipline is also bearing fruit with
underperforming stations responding to actions and we are
progressing our business development activities where there are
many opportunities. In addition, the positive commercial momentum
of the Group, which improved significantly during 2019, has
continued in the new year.
We are also pleased to announce that a successful re-financing
of the Group was agreed with our banking syndicate in January. As a
result, the Group has extended its current levels of facilities
at
GBP325m through to 2025 with improved covenants providing a
strengthened funding platform from which to deliver attractive
levels of growth over the medium term.
Notwithstanding the progress made in 2020 so far, the outbreak
and continued spread of COVID-19 ("coronavirus") is having a direct
impact on the operations of the Group. This impact has been at its
greatest within our operations in Macau and where we handle Chinese
carriers across our network. The situation is still evolving, and
we only have limited visibility of what flight schedules are being
impacted into March and beyond, so it is difficult to assess how
extensive the impact could be at this point.
However, the Board currently estimate that there is likely to be
an adverse profit impact in the year of approximately GBP6-9m on
the assumption that the impact of the virus subsides towards the
end of quarter two. Wherever possible mitigation actions are in
place along with a tight control on costs and expenditure.
Given the otherwise underlying positive momentum of the
business, this headwind is disappointing, but the Group is well
positioned to manage it effectively and return to our positive
growth trajectory for this year and beyond.
The Group will be announcing its Preliminary Results for the
year ended 31 December 2019 on 10 March 2020.
For further information:
John Menzies plc 0131 459 8144
Giles Wilson, Chief Executive Officer
Alvaro Gomez-Reino, Chief Financial Officer John Geddes,
Corporate Affairs Director
Clark Communications
Lesley Brydon 0131 225 9596
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END
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