Aviation services Company John Menzies plc (LON: MNZS) has seen its share price dip following its latest trade update, which enclosed that the Company were expecting reduced earning on-year.
John Menzies said that the reduced earnings reflected what had been a challenging period for the aviation industry, with their business particularly hampered by weak cargo volumes and flight schedule reductions.
The Company noted that they are in the process of undertaking mitigative action in the form of cost rationalisation, which they hope will save at least £10 million by 2020.
John Menzies comments
In its statement, the Company said the following,
“Overall the Board believes that the medium and long term fundamentals of, and prospects for, the business are sound and remain confident that the actions being taken in the current year underpin the Board’s expectations for 2020.”
Company Chief Executive Officer, Giles Wilson, then attached these comments to the update,
“The overall aviation market is having a difficult year. This inevitably is having an impact on our full year outturn. However, I firmly believe in the structural growth dynamics within our industry and all historical data points to recovery.”
“Accordingly, I believe we remain well placed to prosper. Since my appointment I have taken a number of actions to right size the business, we have also restructured our commercial teams to ensure we are ready to seize opportunities as they present themselves.”
“We have a great, motivated team and I look forward with confidence.”
The Company’s shares have fallen 14.15% or 64.8p to 393.2p a share during morning trading on Friday 05/07/19 10:18 GMT. Analysts from Shore Capital, Peel Hunt and Berenberg all reiterated their respective ‘Buy’ stances on John Menzies stock.