Analysis on GARP with strong economic moats, Moat Investing

Moat Investing

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Analysis on GARP with strong economic moats

National Aviation Services/​John Menzies: Agreed Final Offer

GARP with strong economic moats

Equity Bottom-Up

<ul><li>John Menzies plc is a UK-based company not listed in the USA market, and we currently consider it as a great foreign opportunity.</li><li>In 2019, the company delivered an all-time high revenue of £1.32bn (+2% YoY and 2.2x current EV) and EBITDA of £138.7m (10.5% margin).</li><li>In 2020, the company experienced a 60% decline in ground volumes, 50% in fueling, but managed to contain cargo volumes reduction at only 20% and increased revenues in cargo.</li><li>The company bounced back in 1H 2021, Menzies is again profitable, delivering significant profit turnarounds, especially in EMEA and Americas, driven by volume recoveries and greater weight of higher-margin cargo services in the product portfolio.</li><li>Management did not waste the crisis but used it to become a more competitive and leaner organization ready to enjoy the full impact of returning volumes.</li></ul>

John Menzies plc is a UK-based company not listed in the USA market, and we currently consider it as a great foreign opportunity.In 2019, the company delivered an all-time high revenue of £1.32bn (+2% YoY and 2.2x current EV) and EBITDA of £138.7m (10.5% margin).In 2020, the company experienced a 60% decline in ground volumes, 50% in fueling, but managed to contain cargo volumes reduction at only 20% and increased revenues in cargo.The company bounced back in 1H 2021, Menzies is again profitable, delivering significant profit turnarounds, especially in EMEA and Americas, driven by volume recoveries and greater weight of higher-margin cargo services in the product portfolio.Management did not waste the crisis but used it to become a more competitive and leaner organization ready to enjoy the full impact of returning volumes.

John Menzies PLC

Menzies: On The Highway To Recovery