Mobico Announces CFO Departure Amid Financial Reporting Delays

Mobico, the parent company of National Express, has disclosed the departure of its Chief Financial Officer, James Stamp, following accounting issues that led to delays in the publication of its full-year financial results. Stamp will step down from his role at the group’s annual general meeting on June 11th. Helen Cowling, a seasoned CFO with experience at Octopus, Selecta Group, and Ideal Standard International BV, will assume the position of interim CFO on the same date.

The firm had anticipated releasing its full-year financial results on February 29th. However, audit issues at its German rail business, prompted by changes to indices used by the country’s statistics office, led to two delays in publication, triggering negative market reactions. The second delay announcement in March coincided with a profit warning, revealing an approximately $18m impact from its German subsidiary amid the accounting issues.

The tumultuous year also saw Mobico’s shares plummet by over 50% since rebranding from National Express early last year. In its recently published full-year results, Mobico reported a 36% decrease in group-adjusted pre-tax profit to around $114.8m. Adjusted EBITDA decreased by 7.7% to almost $477m, attributed to cost inflation and reduced Covid-era subsidies.

Mobico aims to divest its North American School bus business, which has faced challenges such as staff shortages and rising wages. Despite a revenue increase of 12.2% to approximately $3.9bn, fueled by record-breaking performance in its Southern European coach business ALSA, cost escalations offset the gains. Looking forward, the FTSE 250 firm forecasts adjusted operating profit for 2024 to range between $228m to $253m.

Ignacio Garat, Chief Executive, acknowledges the disappointing 2023 results and emphasizes the company’s focus on restructuring and cost-efficiency programs to drive growth. Commenting on the CFO transition, Mobico chair Helen Weir expresses gratitude to James Stamp for his dedication amidst challenging economic conditions. She highlights Stamp’s efforts in navigating inflationary impacts and adapting to the post-Covid landscape, wishing him success in his future endeavors.

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