Adrian Johnson
TLDR:
Key Points:
- National Express owner, Mobico, CFO James Stamp to depart after accounting issues.
- Audit issues at German rail business caused delay in publication of full-year results twice.
In a regrettable turn of events, Mobico Group’s Chief Financial Officer, James Stamp, will be stepping down after accounting issues caused the firm to delay the publication of its full-year results on two occasions. This departure comes after a challenging year for the company, which has seen shares drop over 50% since rebranding from National Express.
Initially expected to report financial results on February 29, the company faced setbacks due to audit issues at its German rail business caused by changes in indices used by Germany’s statistics office. This led to two separate delays and a profit warning in March, with Mobico taking a £15m hit from its German subsidiary.
Despite a revenue increase of 12.2% to £3.2bn last year, Mobico saw a 36% decrease in group adjusted pre-tax profit and a 7.7% decrease in adjusted EBITDA. The firm is looking to sell its North American School bus business due to rising costs and staff shortages.
Looking ahead, Mobico anticipates an adjusted operating profit for 2024 in the range of £185m to £205m. Chief Executive Ignacio Garat expressed disappointment in the 2023 results but highlighted progress in restructuring efforts and cost efficiency programs.
Chair of Mobico, Helen Weir, thanked James Stamp for his dedication and contribution to the company amidst a challenging economic environment. The board expressed confidence in the new interim CFO, Helen Cowling, and remains focused on transforming the business and maintaining growth.
