25th Apr 2025 08:37
(Alliance News) - Mobico Group PLC on Friday said it expects to suffer a "significant" annual loss due to write-offs of goodwill, as it also announced the planned sale of a business.
The Birmingham, England-based public transport operator intends to sell its North America School Bus business to infrastructure investment manager I Squared Capital for up to USD608 million.
The value of the deal includes an earn-out of up to USD70 million, which is dependent on future performance of the bus business.
Mobico shares were down 18% to 48.18 pence early Friday morning in London.
Mobico expects the disposal to complete in the third quarter of 2025.
"This agreement is a significant milestone for Mobico. It is a first step in strengthening the group's balance sheet and will allow us to reallocate resources away from a capital-intensive business as we focus on continued deleveraging alongside funding our pipeline of growth opportunities, especially in ALSA," said Chief Executive Officer Ignacio Garat.
Looking ahead, Mobico expects to report 2024 adjusted operating profit at the lower end of guidance, with School Bus expected to contribute around GBP9 million to profit.
The firm also anticipates to post a "significant" loss for 2024, driven by goodwill write-offs, de-recognition of deferred tax assets and onerous contract provisions in relation to its German business.
Mobico will release its 2024 results on Tuesday.
By Tom Budszus, Alliance News slot editor
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