Monadelphous completes $10m Skystar sale

Monadelphous Group has sold its aviation support services business Skystar for $10 million as it looks to implement a wide-ranging cost reduction and restructuring program.

Monadelphous said today it had finalised the sale of the Skystar business to Menzies Aviation, a division of Scottish firm John Menzies.

The company flagged the transaction in its annual report in August, at the time saying it intended to initiate a significant cost-reduction program. 

The Skystar business operates across Australia and New Zealand and provides a range of flight logistics services, including passenger check-in functions and baggage services.

The business recorded a 20 per cent growth in revenue during the 2012-13 financial year.

Monadelphous reported a company record $156.3 million net profit for the year to June 30, up 24 per cent on the previous corresponding period's underlying NPAT.

Earnings before interest, tax, depreciation and amortisation (EBITDA) were up 25.7 per cent on FY2012, to $247 million.

Monadelphous shares were 3.25 per cent higher at $18.43 at the close of trade.