Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
https://www.morningstar.co.uk/uk/news/203521/john-menzies-ready-for-takeoff-as-lockdown-lifts.aspx
John Menzies Ready for Takeoff as Lockdown Lifts The Week: Morningstar columnist Rodney Hobson looks at the newsagent-turned baggage handler as travelling starts to resume, as well as Intu and Royal Mail
Rodney Hobson26 June, 2020 | 8:52AM
rodney
You have to sympathise at least a little with John Menzies (MNZS), which belatedly accepted that distributing newspapers and magazines was a dying industry and moved into the burgeoning field of air travel, handling luggage instead of printed paper.
Alas, as we all know covid-19 has emptied the airports of travellers and it was looking pretty grim when Menzies issued such guidance as it could in March. Could there now be light at the end of the runway?
Revenue in April and May was down 64% compared with the same two months of 2019 but that was in line with March’s warning. There was no more bad news. Menzies says it has not incurred any bad debts so far, outstanding payments are being collected from customers and cash is being preserved. Even as things stand now, it can keep going into next year without breaching banking covenants.
Life is already starting to look better as various countries lift lockdowns and ease travelling restrictions. Menzies reckons July will see a revival of activity. A lot could still go wrong if the feared second wave of infections materialises later this year but there is at last some hope and if weaker rivals go to the wall then there could eventually be rich pickings for the stronger survivors.
The rise in debt last year, though comparatively small, was a disappointment but Menzies is committed to reducing the burden so I am not too worried on that score. Cash that would have been paid out in dividends will help.
The shares nosedived from 480p to 75p, a drop of 84%, and they have struggled to pick up again, trading currently around 130p. That is a far worse performance than for most shares. They look an interesting punt for anyone prepared to play a long game.
https://www.morningstar.co.uk/uk/news/203521/john-menzies-ready-for-takeoff-as-lockdown-lifts.aspx
Its very hard to buy bug chunks now. SoI done a test of of selling 20k of these at once MM are will to take it. BTW I am not selling any of mine below £3 (i now hold 37k of these). We've seen many of these blips MM pull the 2nd wave fear but mnzs will resume the up trend next week
I have topped more up this morning. These little blips give us chance to top up. Next week will be interesting as major airlines open up.
Also noticed yesterday shorts have been closed there were 723k shorts open. (At work but i think it was glp and another one both closed their positions) after the news this week. Gla
While other brokers Berenberg, Shore Capital & Peel Hunt all have buy view posted today
Let it fly..
Iv read this
https://www.reuters.com/article/health-coronavirus-john-menzies/update-3-john-menzies-lays-off-55-of-staff-as-coronavirus-hits-air-travel-idUSL4N2BK27P
HEALTHCAREMARCH 27, 2020 / 8:14 AM / 3 MONTHS AGO
* Menzies lays off over 17,500 employees
* Some layoffs supported by govt schemes
* Says hopes to take back those laid off if business returns
* Company wants to tap into UK’s CCFF schemes
* Shares down about 6% (Adds more detail on nature of cutbacks)
By Yadarisa Shabong
March 27 (Reuters) - Airport services group John Menzies said on Friday it was laying off more than half its global workforce to cope with the impact of the coronavirus-related slump in air travel, adding that it hoped to hire many staff back in future.
It also said it will need special dispensation to get aid from a UK emergency fund for which it does not currently qualify.
Among the biggest providers of fuelling, ground handling, lounge services and maintenance, Menzies said its volumes had dropped 20% in the past two weeks as airlines ground flights in response to faltering demand and government curbs on movement.
“John Menzies Plc has existed since 1833 and been listed since 1962, but never have we faced such difficult and unpredictable times,” Chief Executive Giles Wilson said in a statement.
Menzies, which employs over 32,000 employees at more than 200 airports worldwide, said it has reduced headcount by more than 17,500 and that the reductions are being supported by some countries’ government schemes.
The company said it intended to take as many staff back on as possible in future, and it later described the reductions as furloughs and not redundancies.
A company spokeswoman said the company hoped “the vast majority will be back when flight volumes start to pick up again”.
The company said it was waiting for the refinement of the eligibility criteria for the COVID Corporate Financing Facility (CCFF), for which it does not currently qualify.
While it will receive the 80% salary aid on offer from the British government, a company spokesman said that in terms of accessing emergency credit, the group was too big to be classified as a small to medium-sized enterprise (SME), but too small to have the credit rating necessary for the CCFF.
Britain’s state aid programmes for the coronavirus shutdown carry conditions related to the company’s contribution to the UK, rather than global, economy, and demand that firms were already on solid financial ground before March 1.
Wilson said Menzies plays an important role in the aviation supply chain, which includes airlines, airports and service providers.
“Without these three components of the supply chain working together, the sector will not function,” he said.
Menzies said it was in talks with its lenders as it reviews all options to shore up liquidity and withstand the impact of the virus.
They are just doing the standard thing during covid19 to boost their balance sheet same as other well known companies.
I understood from reading old articles in March 17500 staff were put on the government scheme and now that government said companies has to contribute to the scheme so they are getting rid staff to reduce costs.
All companies are doing this now not just Menzies dividend cut, job losses it is becoming norm in these times
https://www.cityam.com/aviation-services-firm-john-menzies-axes-17500-staff-over-coronavirus-hit/
https://www.bbc.co.uk/news/uk-scotland-scotland-business-52070491
from CITY AM article
"As part of John Menzies’ cost reduction initiatives it has now reduced its workforce by little more than 17,500 people around the world, but said the “vast majority” would qualify for government schemes.
The firm said it hoped “a high number of these employees can return to the business.”
From 17500 staff put on government scheme 300 will lose jobs.
Other aviation sector stocks such as Rolls Royce, Easyjet, BA all their stocks went up after stating job cut
https://www.bbc.co.uk/news/uk-scotland-scotland-business-53070156
Menzies Aviation workers face redundancy after global travel slump
More than 300 airport workers in Edinburgh and Glasgow have been put on notice of imminent redundancy.
The Unite trade union said Menzies Aviation has started a 45-day consultation with staff.
Before most aircraft were grounded, the company was one of those providing ground handling for aircraft and baggage.
The firm said it had taken the decision with "great sadness" due to the unprecedented decline in air travel.
The move comes after Menzies Aviation cut more than 17,500 jobs worldwide in March in response to the global slump triggered by the Covid-19 pandemic.
It has been using the furlough scheme in the UK to keep workers on the payroll but the firm will soon have to start paying towards the costs.
As a result Unite said 160 workers based at Glasgow Airport and about 150 workers at Edinburgh Airport face redundancy following the end of the consultation period.
In both cases the numbers amount to half the workforce at each airport.
'Frustrated and angry'
Pat McIlvogue, Unite regional industrial officer, who represents staff at Glasgow Airport, said: "We are deeply frustrated and angry that despite the company calling for the job retention scheme to be extended so that job losses could be avoided they have still forged ahead with this announcement.
"Unite fully understands the situation facing the civil aviation industry, which is why we have been calling for a coordinated national response so that we can safeguard thousands of Scottish jobs.
"However, let us be clear, these job losses do not need to happen and this is a deliberate choice by Menzies Aviation to slash its workforce."
Sandy Smart, the regional industrial officer for Edinburgh Airport, described the development as "bitter news" and accused the company of ignoring calls to keep using the UK government job retention scheme .
'No choice'
But the company claimed it had "no choice" choice but to reduce its workforce.
Giles Wilson, CEO of Menzies, said: "It is with great sadness we have taken the difficult decision to enter into consultation with our employees and unions to reduce the size of our airport teams in the UK & Ireland.
"This has been the most challenging period the UK aviation sector has ever seen and whilst a small number of flights have started operating again, we do not expect volumes to return to pre-Covid-19 levels in the near future.
"We're left with no choice therefore but to take action to match our workforce to the volumes we anticipate through the winter and well into 2021 to ensure Menzies is sustainable now and fit for the future."
Mr Wilson acknowledged the announcement will have a "significant impact" and pledged to do everything to minimise job losses across its network
Kabouter Mgmnt is one of the seller unclear who the second one is.
Looking forward to it. I aim to hold 20k these in this years ISA long term and I now accumulated 31k of menzies over various pots so 109sp will help me average down alot.
Last week down trend SP didn't get there although it was close but it was very hard to buy around that low price now due to demand.
Only people that will sell that low are ones that done no research.
Anyway these guys are working, recruiting just google you can still see their jobs posted in web caches month ago to now and goodnews in the cargo sector etc so will honestly will look forward to visiting it lows again
There is possibly 2 II sellers on the background. It finished in green and not in negative which bodes well but think SP will linger around this range then move to next range whatever that is. Just hope seller clears out and sp goes around 200p mark soon
Looking at the 3 months chart it is slowley climbing up visting previous lows.
At least it is giving us time to top up at low price. Sold some retail stocks and topped up here now. I have been accumulating these with profit from others and although been disappointed why it has not moved but plus side chances are now to top up if u can. With Airlines now open for business and government ordered to keep the planes extra clean and these guys have the cleaning contract with likes with BA and Easyjet to do this aswell
Sold my last tranch at 41p last week having bought at 24p didn't think this trace back to near 30p again so bought my initial tranch again this afternoon will buy more if it visit 30p tomorrow. Grossly undervalued compare to others dyor
They also advertised on their twitter
@Superdry
“We will be open from June 15 in England. Click the link to find your nearest store http://superdry.com/stores”
https://mobile.twitter.com/Superdry/status/1272121610091130880?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet
On their last online presentation March20 they did say they are in good position to come of Covid19 and dividend cut was only short term (to boost the balance sheet) and they will reinstate dividend in 2021 from growth.
Holding 27k of these now . SP was bought down on sentiment on very low volumes then seller appeared. Since then volumes has been doubled and SP been stuck in a range.
No news on if Kabouter Management completely sold out. Comparing top shareholders on Simply wall street against Menzies website shows Kabouter Management holding 2.73% as per last RNS. Some others increased their holding only by small amount are Mithaq Capital (pre 5.94% now showing on their website 6.04%), Menzies Family Holdings (pre 5.01% now 5.78%). Decreased holding Premier Miton Investors fund (pre 4.05% now 3.16% . Blackrock holding 3% and showing last reported date to be 8th Apr 20 increased their holding by 26% which is now stand 2.56m. Simply wall street shows no other top 25 shareholders changed position. Also SW st has Menzies fair value at UK£8.86 undervalued significantly.