- Shares down 55% over the past year
- Annual group pre-tax loss of £98.3 million
- Slow post-pandemic recovery
Shares in Mobico (MCG) were down over 8% to 54p in morning trading despite the bus and rail business reporting a 12.2% rise in group full year revenue to £3.15 billion, driven by improved passenger volumes, route recovery and pricing.
The transport group however made a group pre-tax loss of £98.3 million and a group operating loss of £21.4 million for the year ending 31 December 2023, impacted by £30 million restructuring costs and a £99 million charge to the German rail onerous contract provision.
RESULTS DELAY
Back in February, the transport group warned that their results would be delayed as it had identified that certain accounting judgements relating to its German rail business should be ‘subject to further review’, including its full-year 2022 results.
Not surprisingly this announcement spooked investors and shares fell more than 10% on the day.
Mobico’s shares have lost more than half their value over the past year.
NEW CFO
Separately the transport group announced the group CFO James Stamp will stand down at the AGM (annual general meeting) on 11 June 2024.
Helen Cowing will be joining Mobico on 8 May and will assume the role of interim CFO on 11 June.
It was not all bad news for the transport group (formerly known as National Express) as it won 43 new contracts worth over £1 billion in total contract value and circa £126 million in annualised revenue and announced multi-modal hub expansions in Madrid, Chicago, Boston and Geneva.
EXPERT VIEW
Russ Mould, investment director at AJ Bell said: ‘While the numbers did not reveal any big shockers, they also did little to help steady a share price which has gone right off track over the last year.
‘Profits fell, thanks in part to cost inflation, with the new leadership appointments which have been added to the team of late needing to demonstrate they can translate an encouraging trend in passenger volumes into improved financial performance.’
Disclaimer: Financial services company AJ Bell referenced in the article owns Shares magazine. The author of the article (Sabuhi Gard) and the editor (Martin Gamble) own shares in AJ Bell)
