John Menzies PLC (LON:MNZS) said it has “put the business back on the front foot” in the last three months, after the aviation services firm swung to a loss in the first half of the year due to slow cargo volumes and the grounding of the Boeing 737 Max.
The company, which provides ground handling, cargo handling and fuelling services for airlines, said in a trading update on Thursday that it had taken “tough management actions” to combat a difficult trading environment this year.
READ: John Menzies swings to loss, hit by grounding of Boeing 737 Max
In August, John Menzies posted a first-half loss of £4.4mln, in part reflecting the grounding of Boeing’s 737 Max fleet in March after two fatal crashes, leading to cuts in flight schedules for many airlines.
The airline services firm said that in the three months to the end of October it has begun to address “under-performing operations” by focusing on productivity and margins, with a programme to cut £10mln in costs alongside rejigging the management team.
Giles Wilson, chief executive, said he was “very pleased to see the tough management actions taken during the year are delivering benefits", citing key improvements in “operational delivery, commercial activities and customer engagement”, with some substantial contracts renewed, new contract wins and a “full pipeline of opportunities”.
Concluding a “legacy legal case” brought in around £10mln to help trim net debt that stood at £215mln in August.
The shares reversed their year-long downward trend in Thursday morning trading, up 3% at 421.8p.