Menzies announced a 27% increase in revenue to $1.35 billion for the fiscal year ended February 21, 2022.
The Edinburgh-based company’s latest results also show an operating profit of $76 million on losses a year earlier, with credit for the turnaround going to recent restructuring activities.
The council also noted that this also reflected the “robustness” of air cargo, return flight volumes, ongoing management actions to control costs and government support programs.
Menzies raised $30 million in equity in May last year to fund its business development, merger and acquisition plans and to reduce leverage.
It reported “strong” cash flow, resulting in substantial cash and unused bank facilities, with free cash of $225 million.
The Board of Directors has asked the Takeovers and Mergers Panel to extend the deadline to allow them more time to discuss the proposed takeover by National Aviation Services (NAS).
The panel extended discussions by giving NAS, and its parent company Agility Public Warehousing, until March 30 to announce their firm intention to make an offer for Menzies.
This follows NAS’ purchase of £73 million worth of shares, after the board rejected its initial takeover proposal.
Last week, the board announced that it had reviewed NAS’s final proposal and was prepared to recommend it to the company’s shareholders.
Elsewhere in the income statement, the board noted a “gradual” increase in annual revenue to $112 million, following commercial contracts won with Avianca Cargo in Miami, the outsourcing of ground services with Qantas in Australia and the renewal of its contract with EasyJet at its 23 airports in Europe.
The company also welcomed its entry into the emerging markets aviation industry, with expansion into China, Costa Rica, El Salvador and Guatemala. It has also established bases in Iraq and Pakistan.
The board confirmed that it aims to generate $100 million in net annualized new revenue and several other business development opportunities that would generate approximately $200 million to $275 million in new revenue in the short to medium term.
“This recovery will extend beyond 2022 as air travel business volumes are not expected to fully return to the levels we saw before the pandemic until 2024,” the statement read. “This continued recovery would support further revenue growth for our refueling and ground services businesses in the medium term.
Since the end of the year, Menzies has renewed the extension of a five-year contract to provide refueling and fuel fleet services for Shell in the UK and won a five-year freight contract with Geodis in Amsterdam.
Philipp Joeinig, Chairman and CEO of John Menzies, said: “I am delighted to report a strong set of results for 2021, despite the continued impact of Covid on aviation business levels – the rebalancing of our activity as a major player in aviation logistics continues. on the beat.
“We have seen significant growth in our air cargo business by winning contracts and expanding the global reach of our network, while our fuel and ground handling businesses are strengthening.
“Our future growth will be driven by continued volume recovery, global aviation market growth, further commercial gains and the successful conversion of our exciting commercial development pipeline – following significant management action to reduce costs, we expect this growth to be achieved while delivering structurally higher margins.
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