John Menzies, a distribution company based in Edinburgh most closely linked with newspaper distribution, has seen its profits leap to £56.4 million in the last year.
However, it is not newspaper distribution that has been behind the increase, with its aviation arm now being the main driver in profits.
It shows that taking a new approach to business with new strategies, be it through diversification or new financing methods such as invoice discounting, can help businesses thrive.
The group, which will celebrate its 180 year anniversary in 2013, secured new contracts to the tune of £41 million in 2011. The 50 accounts won were added to a further 81 contracts renewed in the same period, with a value of £77 million.
The group has benefited from the continued growth of low cost air travel, most notably from the expansion of major players in the industry. Announcing the figures, the finance director at Menzies said:
“The real growth is coming from our aviation division and we are now in 131 airports in 29 countries.”
New business from easyJet includes the handling of all flights into Toulouse, France. The growth continues too, with a new contract to oversee Flybe operations at Birmingham International and Gatwick starting in April 2012.
The growth in the aviation sector comes as the distribution sector suffered a flat performance. That this came at a time when printed periodical volumes continued to fall, (newspapers are down by eight percent and magazines down by six percent in the year) is also positive news.
The yearly trading figures result in a record turnover for the group of £2bn.