John Menzies announces Hong Kong exit
Article Date: Oct 21 2008Logistics specialist John Menzies is to reduce its debt after agreeing to sell its Hong Kong operations.
The group, which has distribution and aviation interests, is to sell Menzies Aviation (Hong Kong) to Singapore Airport Terminal Services (SATS).
“It is always disappointing to exit a market where the team have tried hard to create a sustainable platform, but I believe this end will be better served by SATS,” John Menzies executive director Craig Smyth said.
John Menzies will raise £1.3 million in cash from the disposal, which will also be used to continue the international expansion of its aviation business.
“Menzies Aviation remains focused on our strategic goals of maximising capital returns and profitability through investing in and developing regional densities, with attractive airline customers,” he added.
In the year to 29 December 2007, Menzies Aviation (Hong Kong) had a pre-tax profit of £300,000 with its assets valued at £2.8 million.
Edinburgh-based John Menzies was established in 1833 and today has operations in Europe, North America, South America, South East Asia, Australasia and Africa. Its aviation business has more than 14,000 employees serving some 500 companies at 120 locations in 28 countries. The distribution division’s 4,000 staff support the newspaper and magazine supply chain in the UK and Ireland.
