DISTRIBUTION and aviation group John Menzies said yesterday it would take a £7m hit from the closure of its loss-making cargo handling operations at Chicago Airport.
The closure of the operations – which comes as John Menzies has “exhausted all alternative options” – will improve earnings by around £1.4m next year, it said.
Following the restructuring actions across the group, John Menzies yesterday forecast a full-year exceptional charge of £18m.
John Menzies operates in two divisions – newspaper and magazine distribution in the UK and aviation services. The former generates 70 per cent of the company’s revenue, while the latter – which operates at about 130 airports in 29 countries – accounts for around 64 per cent of its adjusted operating profit.
The FTSE 250-listed company added that full-year results would be in line with expectations.
Additionally, the group said that group finance director Paul Dollman would stand down at the AGM in May, while non-executive director Ian Harrison will also retire from the board.