Mobico Group (LON: MCG) is the worst performing fully listed company today following the publication of third quarter figures. There will be no final dividend this year. The share price slumped 25.6% to 63.275p. The share price has more than halved this year.
Formerly known as National Express, Mobico has bus and coach operations in the UK, North America, Europe, Middle East and Africa. Revenues improved by 10% in the third quarter, but increasing costs are holding back profit. Full year operating profit is expected to be between £175m and £185m. Previous consensus was £202m.
UK revenues are rising with particularly strong coach revenues. There was also growth in North America and Spain, while revenues declined in Germany and Morocco.
Mobico is on track to achieve annualised cost savings of £30m and there could be a further £20m of cost savings.
There are plans to seek a buyer of the North American school bus business, where the performance is recovering. This will help to reduce borrowings.
