National Express owner Mobico Group’s shares cratered this morning after it announced a review into audits of its German rail business would delay publication of its full-year results.
Shares fell over 11 per cent by mid-morning, continuing a 12-month share price slump of nearly 40 per cent. The announcement had initially sent shares crashing nearly 20 per cent in early trading.
In a statement on the London Stock Exchange, Mobico said that accounting judgements made relating to its German Rail business including in the 12 months to 31 December 2022 “should be subject to further review.”
“The delay in publication of financial results will allow management to conclude its review and allow the group’s auditor, Deloitte, the requisite amount of time to complete its audit.”
A new date for publication will be confirmed in due course.
The London-listed firm’s Spanish bus and coach service Alsa delivered “another strong performance” in 2023, with the UK and North American segments performing in line with expectations.
In Germany, it noted the impact of industry-wide driver shortages, energy price volatility and lower energy cost recovery.
As a result, it expects the onerous contract provision for the rail business, as at 31 December, to increase by between £40m and £70m.