25th Mar 2024 09:35
(Alliance News) - Mobico Group PLC on Monday lowered its earnings outlook, and delayed its 2023 results again, as it grapples with accounting issues at its German rail business.
Shares in Mobico fell 5.3% to 67.70 pence in London on Monday morning.
The Birmingham-based public transport provider, formerly known as National Express, now expects annual results to be published in the second half of April, compared to a previous expectation of by the end of March, itself delayed from February 29.
Mobico expects adjusted earnings before interest and tax in the range of GBP160 million to GBP175 million, reduced from previous guidance of GBP175 million to GBP185 million.
Mobico said its expectation was that Ebit should be at the upper end of that range.
Mobico said it had made good progress in its review of accounting judgements relating to its German rail business, outlined in February, but said a number of items remain to be agreed with its auditors.
In particular, Mobico highlighted unexpected revisions to two key indices used to calculate the recovery of energy costs under the contracts.
Talks with relevant passenger transit authorities continue but Mobico said it was unlikely that these points will be resolved before the release of 2023 results.
At this stage, Mobico estimates that the maximum effect of the revised indices is a reduction in total cost recovery over the term of the contracts, to 2032, of around GBP15 million.
Mobico expects an increase to the onerous contract provision as December 31 2023 of about GBP70 million in addition to a prior year adjustment in relation to the onerous contract provision in 2022 of around GBP25 million.
By Jeremy Cutler, Alliance News reporter
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