Mobico delays FY results, shares slide

(Sharecast News) - Mobico shares slumped on Tuesday after the National Express owner said results would be delayed due to an accounting review of its German rail business. Publication of results for FY 2023 was pushed back from 29 February to before the end of March.

The company said it had identified accounting judgements made relating to the German rail business "that should be subject to further review". The delay to results will allow management to conclude its review and give auditor Deloitte the requisite amount of time to complete its audit, it said.

For FY 2023, it continues to expect adjusted earnings before interest and tax of between £175m and £185m.

Mobico also said that ALSA - its European bus and coach business - delivered "another strong performance" in FY 2023, while the UK and North American businesses performed in line with expectations.

However, the German Rail business was hit by industry-wide driver shortages, energy price volatility and lower energy cost recovery than previously expected.

"As a result, and subject to the conclusion of the review mentioned above, the Group currently expects the onerous contract provision as at 31 December 2023 to increase by between £40m - £70m which will be utilised over the remaining life of the contract between 2024 and 2033," it said.

At 0905 GMT, the shares were down 10% at 75.65p.