Edinburgh-based John Menzies plc, the global aviation services firm, on Tuesday announced a trading update for the four months to October 31, 2018, saying it continues to trade ahead of last year and is on track to meet expectations for the full year.
“Looking forward we firmly expect to achieve our 8% per annum revenue growth target as we move to 2019 and beyond,” said Menzies.
“Menzies continues to make progress and is on track to grow the operating margin for the third consecutive year.
“2018 has been a commercially challenging year and revenue growth has slowed, primarily due to licences not renewed, some contracts lost and the exiting of less favourable contracts.
“Despite these headwinds, throughout the period we have gained significant new business winning 34 net contracts generating £8m of annualised revenue.
“Notable gains include hub operations with Sunwing in Toronto; Czech Airlines in Prague; and an award from Singapore Airlines in Sydney.
“We also opened a new business in Jakarta, Indonesia and we see this region as one of great potential and we will look to win further contracts during 2019.”
Menzies said it also renewed key contracts including a renewal with American Airlines for into-plane fuelling contracts at 24 locations across the US.
John Menzies CEO Forsyth Black said: “I am pleased that we are continuing to make solid progress against our strategic objectives.
“Our focus on excellent service delivery is key to our success and continuing to deliver on our margin improvement plans will drive better returns.
“Looking forward, there is no doubt that our industry is evolving with the introduction of fuel efficient composite aircraft, a greater focus on on-time performance and the need to deliver great customer experiences.
“We aim to be at the forefront of the evolution as we strive to position ourselves as the logistics partner of choice to our airline customers.
“To do so we will deliver the highest standards of service underpinned by our extensive risk management solutions and our innovative technological solutions.
“We have invested in and built a strong platform for growth and will strive to lead the industry with the technological service offering that underpins the delivery of safe and secure on-time performance.
“We continue to be excited by the opportunities available to us and we believe we are excellently placed as a pure play aviation services business in a structural growth market.”