'Satisfactory' start to year for Menzies
John Menzies has taken a knock despite flagging a "satisfactory" start to the year as the newspaper distributor and support services firm said higher start-up costs had hurt profits at its aviation business.
Major start-ups undertaken in South Africa and India have cost the company more than expected, which will trim short term profitability, it said, although trading overall in the period to 14 May is in line with expectations.
The group also predicts cargo volumes in the US, broadly flat in the first quarter, will soften during the rest of the year, while cost pressures are expected to contribute to worse than expected results from the region.
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The distribution division is on track despite a challenging magazine market. Overall volumes are still falling, with weeklies broadly flat and monthlies down year on year.
Meanwhile, strong cover price growth at the newspapers business has more than offset any volume decline.
