(MENAFN- ProactiveInvestors)Newspaper distributor and aviation ground handler John Menzies (LON:MNZS) flagged a move into the online parcel market as it reported a profit hit in its aviation business. Menzies is moving into the growing parcel delivery business by buying Scottish courier AJG Parcels which delivers throughout the Highlands & Islands from its Inverness base. The group is hoping the move will enable it to make better use of its national newspaper and magazine distribution network. Its distribution business has been hit by print circulation declines as people get more news and information from the internet. Chief executive Jeremy Stafford said: "I am delighted we have recently made our first step as a neutral consolidator into the growing e-commerce parcel market with the acquisition of AJG Parcels." The group said it had a tough first half and profits would be weighted to the second six months. Aviation turnover rose 8% but profits took a hit from restructuring costs contract losses in 2014 and lower volumes at London Heathrow following terminal changes. There was a silver lining however as strong cargo volumes and ground handling hub wins in the US and Scandinavia in the last 12 months underpinned aviation growth. Stafford said: "The North American aviation outsourcing market remains very busy and a pipeline of opportunities continues to build." The group said its newspaper and magazine distribution arm topped management's expectations in the first half as cost cuts offset lower profits from print media. Group turnover was up 2% at £1.01bn with underlying operating profit £3.8mln lower as expected at £20.2mln. Shares in John Menzies fell 17.5p to 475p.
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