JOHN MENZIES [LON:MNZS] said profits in the year ahead will be hit by the costs of dealing with the closure of terminals at Heathrow, as the airport services and newspaper distribution group reported a slump in annual pre-tax profits linked to “operational difficulties” at the UK’s largest airport.
The Edinburgh-based company, one of the largest in Scotland, said the issues at Heathrow - which saw terminals closed during redevelopment - were now largely resolved but will continue to weigh on results during the first half of this year. The news sent the shares more than 5pc lower yesterday.
The airport services part of the company, which helps passengers, luggage and cargo to get on and off aircraft, is employing more staff at Heathrow to maintain a good service during the redevelopment. The “ground handling” division reported a 45pc slump in operating profits during the 12 months to the end of December, despite a 4pc increase in revenues after the firm won more contracts.
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