StockMarketWire.com - Aviation services group John Menzies said it had performed better than hoped during the second quarter, though times remained challenging due to the Covid-19 crisis.

Trading during the three months through June had been surprised on the upside, with a recovery in flight activity anticipated to begin from early July, the company said.

To be sure, the pandemic had a 'significant adverse' impact on financial performance, with many customer flights grounded.

During April and May, ground handling and fuelling activity was about 75% lower than 2019, with ancillary passenger airline services similarly affected.

Cargo performance continued to be slightly more resilient overall, with total volumes down about 37% in April.

'As a result of this substantial reduction in activity levels, revenues in April and into May were consistent with expectations at the time of the March trading update and about 64% below budgeted levels,' John Menzies said.

'Despite the significantly reduced revenue, strong cost management, together with quick and effective mitigating actions, resulted in an overall performance for April and into May that was better than expected at the time of the March trading update,' it added.

'We continue to tightly manage outstanding payments with our airline customers and are pleased that in the majority of cases payment terms continue to be adhered to.'

'At this time, whilst we have been affected by the impact on our customers, we have not incurred any material bad debts during the current crisis.'

John Menzies said it believed that it had sufficient liquidity to support requirements into 2021 following cost cutting and the benefit of government scheme.

The company said it was having constructive discussions on necessary revisions to its banking covenants.



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