UK transport group Mobico warns on profit amid accounting issues
(Reuters) -Mobico lowered the bottom end of its annual profit forecast range by about 9% on Monday as the British transport company flagged some accounting issues related to its German rail business.
The erstwhile National Express tackled challenging conditions in 2023 as the transport group grappled with high costs while a reduction in COVID-19 funding dented its profits.
The group, which was hit hard during the pandemic as lockdowns restricted travel, in October warned on profit and suspended dividends, and said it was planning to sell its North America school bus business in early 2024 to cut debt.
Mobico, which operates bus, coach and rail services in Britain, North America, continental Europe, North Africa and the Middle East, said certain indexes used in the German transport sector to determine the level of cost recovery had been revised.
It expects a reduction in total cost recovery of about 15 million pounds ($18.9 million) due to the change.
Mobico last month said is annual results would be delayed due to the accounting review. It has now forecast adjusted operating profit for the year ended Dec. 31 to be in the range of 160 million pounds to 175 million pounds, compared with its previous expectations of 175 million pounds to 185 million pounds.
($1 = 0.7934 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)
