Menzies Aviation has warned the Covid 19 coronavirus could hit profits for this year by up to £9 million.
The Edinburgh-headquartered group which handles baggage and other logistics for airlines worldwide said it had been hardest hit in Macau and other airports where it deals with Chinese carriers.
In a trading update today John Menzies PLC said: “The situation is still evolving, and we only have limited visibility of what flight schedules are being impacted into March and beyond, so it is difficult to assess how extensive the impact could be at this point.
“However, the Board currently estimate that there is likely to be an adverse profit impact in the year of approximately £6-9 million on the assumption that the impact of the virus subsides towards the end o fquarter two. Wherever possible mitigation actions are in place along with a tight control on costs and expenditure.
“Given the otherwise underlying positive momentum of the business, this headwind is disappointing, but the Group is well positioned to manage it effectively and return to our positive growth trajectory for this year and beyond.”
John Menzies is due to announce its preliminary results for the year ended 31 December 2019 on 10 March 2020.
It said its strategy to “right-size” the business and reduce overheads last year had delivered benefits and that a re-financing had been agreed in January to extend its debt facilities at £325m through to 2025.
