Adrian Johnson
TLDR: National Express CFO Resigns Following Audit Mishap
Key Points:
- CFO, James Stamp, resigns from Mobico after audit issues and inaccurate reporting
- Shares drop by over 50% as full-year results show a decrease in profit and EBITDA
The parent company of National Express, Mobico, has experienced financial turmoil leading to the resignation of its CFO, James Stamp. The delay in releasing full-year financial results due to audit issues in the German rail business resulted in significant negative market reaction. Mobico’s shares plummeted by over 50% post-rebranding from National Express, highlighting the consequences of inaccurate financial reporting.
The delayed full-year results showed a 36% decrease in group-adjusted pre-tax profit and a 7.7% decrease in adjusted EBITDA. Stamp will step down at the upcoming annual general meeting, with interim CFO Helen Cowling taking over. The company plans to restructure and divest its North American School bus business to address financial challenges.
Mobico’s CEO, Ignacio Garat, acknowledged the disappointing 2023 results and emphasized a focus on cost-efficiency programs to drive future growth.
