John Menzies has said that its full-year profit from its aviation business would be below expectation and that the unit's Managing Director would be leaving the company with immediate effect.
Craig Smyth, who has led the division of John Menzies that is responsible for aircraft refuelling, cargo and baggage handling at airports worldwide, resigned in August this year but the date of his leaving had not previously been announced.
Analysts from Liberum brokerage wrote that Craig Smyth's immediate departure suggested that the unit's issues might have been partly "execution-related", though pricing at Heathrow airport has also impacted the handling business.
The company's aviation business, which also operates VIP lounges and a range of other services, has been affected by the loss of some British Airways contracts at Heathrow, as well as contract losses in Colombia and lower-than-expected cargo returns in Australia.
