National Express owner Mobico has announced the departure of its chief financial officer after accounting issues caused the firm to delay publication of its full-year results twice.
James Stamp will stand down at the group’s annual general meeting on 11 June. Helen Cowling, a veteran CFO with experience at Octopus, Selecta Group and Ideal Standard International BV, will fill the role of interim CFO on the same date.
Mobico had expected to report its full-year financial results on February 29. However, audit issues at its German rail business caused by changes to indices used by the country’s statistics office pushed back publication twice, sending shares spiralling on both occasions.
The second announcement in March fell alongside a profit warning, as Mobico revealed it would take a £15m hit from its German subsidiary amid the issues.
It comes after a torrid year for the company, which rebranded from National Express early last year but has since seen shares fall over 50 per cent.
In its full-year results, published today, Mobico said group adjusted pre-tax profit had decreased 36 per cent to £92.9m
Adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) decreased 7.7 per cent to £386m, as the firm flagged continued cost inflation and significantly reduced Covid-era subsidies.
Mobico is looking to sell of its North American School bus business, which has sucked out cash to address staff shortages and rising wages. The cost increases offset a revenue increase of 12.2 per cent, to £3.2bn.
Looking ahead, the FTSE 250 firm anticipates adjusted operating profit for 2024 to be within a range of £185m to £205m.
Ignacio Garat, Chief Executive, said: “Our 2023 results are below the expectations we set ourselves at the beginning of the year. The delays due to the additional work relating to the German Rail business was regrettable but it is now concluded.
“Although Group revenue growth was encouraging, driven by passenger demand and actions taken to recover inflation, this has not translated into an improvement in reported profitability.”
“I am nevertheless encouraged by the progress we have made in transforming the business, with the new leadership we have appointed in North America School Bus and the UK & Germany making a tangible impact and the first phase of our Accelerate cost efficiency program delivering ahead of expectations.”
“Our focus remains on delivering the benefits of our restructuring programs and in recovering inflationary costs through pricing, while maintaining a relentless focus on the quality of our offering to support growth.”
Helen Weir, Chair of Mobico, said: “On behalf of the Board, I would like to thank James for his contribution to Mobico.
“He has shown considerable dedication as we have sought to navigate the business through a challenging macroeconomic environment, managing the impacts of high inflation and adapting to a post Covid world. We wish James all the best for the future.”
More to follow.