Company Report: Journey Group PLC
The journey so far We profile Journey Group plc, a leader in the provision of catering, travel supplies and cabin management services worldwide

Journey Group plc was founded in 2004

The airline industry is a challenging market place

Journey is busy laying the foundations for some great things

Journey Group plc is a UK-based company offering catering, travel supplies and cabin management services to the international airline and travel industry.

Its operations are organised into two main business divisions: products and services. The services division’s principal activities comprise in-flight catering and retailing, media distribution and supply chain management, primarily for the international airline industry; the products division’s principal activity is the provision of in-cabin travel supplies, primarily for the international airline industry.

The company’s subsidiaries include Watermark Limited, Watermark Americas Inc., Watermark Asia Limited, Watermark Asia Pacific Pty Limited, Watermark Asia Holdings Limited, Media on The Move Limited, Air Fayre Limited, International Catering Limited and Elev8 Retail Limited.

“Journey Group plc was founded in 2004 (then named Watermark Group Plc) when two very distinctive and innovative companies, Watermark Limited and Air Fayre Limited joined forces,” said Stephen Yapp, writing in his Chairman’s message published on the firm’s website.

“Air Fayre’s focus and philosophy was very much in line with that of Watermark Limited; to provide a complete, tailored solution to their clients’ ever evolving business needs,” that same message continued. “Air Fayre’s unique and award winning business model is designed to offer its customers a complete logistics and supply chain solution in tandem with more choice than the standard airline catering company.

“Watermark Limited’s biggest strength is its creative flair at a conceptual level, using high quality brands for its products, innovative ideas, creating and maintaining a strong identity for its clients,” he added.

Yapp, who joined the firm in 2007 and is Executive Chairman of the Board, as well as Company Secretary, continued: “Whether a frequent business traveller or only travel once a year for that well earned break, chances are you have experienced our on board catering, slept peacefully under one of our blankets, blocked out the noise of your fellow passenger with one of our ergonomically designed headsets, read an interesting article in a magazine supplied by us or bought from our extensive range of on board retail offerings.

“Both Air Fayre and Watermark have a strong presence in their markets. Our team strategy is to move forward, expanding further on an international scale, to strengthen existing partnerships and build new ones, remaining innovative in our designs and competitive in our pricing.

“None of the above could be achieved without our employees; they share our vision for the company, they believe passionately in what they do; providing customer service excellence all the time, every time.”

OVERCOMING CHALLENGES
Journey Group plc has had to overcome a few challenges in the vastly changed economic climate. But, it has been busily laying “foundations” for creating what it terms “significant value for shareholders”, and has outlined a number of growth opportunities thanks to some strategic repositioning. However, the airline industry remains a challenging market place.

“Considerable progress continues to be made in re-positioning the group’s business to lay the foundations for future growth while taking the steps required to mitigate the worst effects of the present challenging market conditions,” Yapp said in the company’s 2009 interim report. “The near term future continues to be difficult to predict and the group is exposed to a number of uncertainties beyond its control, but I believe that it is increasingly well equipped to meet the challenges ahead and deliver value in the long-term.”

Those “foundations” were boosted further when the company announced that Air Fayre had entered into a JV with Alpha Flight UK, to merge their respective in-flight catering operations serving the international airline industry at London Heathrow Airport.

The new business, known as Alpha-Airfayre Limited, we understand, will serve 18 international airlines around 30,000 meals per day.

All other activities currently undertaken by both parties, including Journey’s Los Angeles operations, are outside of the scope of this agreement.

In a statement accompanying the news released late 2009, Yapp explained: “We are delighted to be able to announce this merger, as it will bring together the best aspects of two individual and unique businesses.

“The combined operations at London Heathrow airport will provide our customers with even more choice and expertise whilst, at the same time, continuing to deliver exceptionally high standards of service, for which both companies are well known. For our employees we will be able to offer variety, career progression and the opportunity to be part of a larger organisation.”

Ken Adamson, Managing Director of Alpha Flight Services, UK added: “The Joint Venture at Heathrow airport with Air Fayre forms a key and exciting part of Alpha’s overall UK and Ireland strategy, which is all about focusing on what is important to our customers.

“At London Heathrow, our customers want highly cost effective logistics operations combined with the experience and capability to both serve their often complex requirements, and consistently produce the finest authentic cuisine.

The complementary strengths of Alpha Flight and Air Fayre promise to deliver a unique and exciting proposition for both our current and new customers.”

What the future holds is uncertain, but Journey is certainly busy laying the foundations for some great things.

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