John Menzies PLC (LON:MNZS) said its current trading performance was ahead of last year and that it was on track to meets its full-year expectations.
The FTSE Small cap logistics firm said on Tuesday it firmly expects to achieve its 8% per annum revenue growth target it moves in to 2019 and beyond.
READ: John Menzies sees higher cargo volumes, new contracts help drive first-half profits higher; CMA to probe Airline Services deal
Menzies said it continued to make progress in its second half and expects to grow its operating margin for the third consecutive year.
However, it said that 2018 had been a "commercially challenging year" and revenue growth has slowed, primarily due to licences not being renewed, some lost contracts and the exiting of less favourable contracts.
Despite these headwinds, Menzies gained significant new business, winning 34 new contracts, generating £8mln of annualised revenue.
Notable wins include hub operations with Sunwing in Toronto, Czech Airlines in Prague and an award from Singapore Airlines in Sydney. The firm also opened a new business in Jakarta, Indonesia.
Menzies also secured several major contract renewals including one with American Airlines covering into-plane fueling contracts at 24 locations across the USA.
"Looking forward, there is no doubt that our industry is evolving with the introduction of fuel efficient composite aircraft, a greater focus on on-time performance and the need to deliver great customer experiences,” CEO Forsyth Black said in a statement.
“We aim to be at the forefront of the evolution as we strive to position ourselves as the logistics partner of choice to our airline customers. To do so we will deliver the highest standards of service underpinned by our extensive risk management solutions and our innovative technological solutions,” he continued, adding that Menzies was well placed as a pure play aviation services business in a structural growth market.
The company said its pension position continued to improve, with the latest triennial valuation close to being fnalised, It expects the actuarial deficit following the triennial valuation, and subsequent completion of the disposal of Menzies Distribution, to be in the range of £50-£55mln.
Shares in John Menzies were 2% up at 511p in early trade.