(Adds analyst comments, details, share movement)
By Esha Vaish
Sept 5 Scottish firm John Menzies Plc
named former Serco unit head Jeremy Stafford as group chief
executive, marking its first hire for the position in over seven
Stafford, who will assume office on Oct. 2, was most
recently CEO of the UK and Europe units of British outsourcing
firm Serco Group Plc, John Menzies said on Friday.
John Menzies has been looking to expand its aviation
services business to shore up profits at a time when dwindling
demand for publications has stymied growth at its distribution
He has also worked at British Airways, the airline owned by
International Consolidated Airlines Group.
"By the looks of it, his curriculum vitae looks certainly
impressive. He's got some aviation experience (and) he's got
some support services experience. So it seems like he ticks all
boxes when it comes to the actual background," said Karl Burns,
an analyst at Panmure Gordon.
John Menzies has not had a group chief executive since 2007,
and instead has been run by two managing directors, a finance
director and a company secretary.
The company said last month that following the resignation
of Craig Smyth, managing director of its aviation unit, it had
decided to change its management structure and was searching for
a group CEO.
"I think this structure will be more effective, particularly
(in terms of) M&A and general sort of strategy," analyst Burns
said, adding that the management change would help the company
move in the right direction.
John Menzies' shares were flat at 615 pence in thin morning
trade on the London Stock Exchange.
(1 US dollar = 0.6126 British pound)
(Editing by Gopakumar Warrier)