Continued revenue and passenger growth

FY 24 Adjusted Operating Profit guidance unchanged at £185m to £205m

Deleveraging remains a priority: North America School Bus sale process underway

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First half results, six months ended 30 June 2024

H1 2024 highlights

• Continuing positive passenger demand – strong revenue performance up 7.6% (at constant currency), with continuing growth across much of the
• Profit improvement initiatives on track - Group Adjusted Operating Profit increased by £13.7m, (23.8% on a reported basis).
• Unchanged FY 24 Adjusted Operating Profit guidance of £185m to £205m.
  • Cost inflation lower than in prior year, with full benefit from mitigating pricing actions in 2023 and H1 2024 expected in H2 this year
  • Accelerate cost saving programme remains on track, FY 24 expected savings of £30m under Accelerate 1.0 and £10m under Accelerate 2.0.
• Stable balance sheet with clear plans to reduce leverage and debt
  • Good cash generation, with Free Cash Flow of £90.5m (£79.7m in H1 23)
  • New debt reduction initiatives to deliver £25m of additional benefits in FY 24
  • Improvement in covenant gearing, relative to FY 23, targeted at 31 December 2024
• Formal sale process for North American School Bus underway following strong bidding season where routes won exceeded routes lost for the first time in over a decade
• Operational Performance - record H1 results in ALSA and the improvement in North America, were delivered alongside ongoing recovery in UK and Germany.

Ignacio Garat, Mobico Group Chief Executive, said:

“Mobico has delivered a good performance in the first half of 2024, with continuing positive passenger demand and revenue growth. ALSA has delivered record H1 results, underpinning the overall growth of the Group. We have retained, won and successfully mobilised significant new business across different parts of the Group and our cost-reduction initiatives have delivered savings slightly eariler than expected. Addressing our leverage remains a priority and in addition to commencing the formal sale process for North American School Bus, we have identified new organic debt reduction initiatives that will deliver in the second half. We remain confident of achieving FY 24 Adjusted Operating Profit of between £185m and £205m.”

Notes

1. To supplement IFRS reporting, we also present our results (including EBITDA) on an adjusted basis to show the performance of the business before adjusting items. These are detailed in note 5 to the Financial Statements and principally comprise intangible amortisation for acquired businesses, re-measurement of historic onerous contract provisions and impairments, Group wide restructuring and other costs and, in the prior year, re-measurement of the WeDriveU Put Liability and voluntary repayment of UK CJRS grant income ('furlough'). In addition to performance measures directly observable in the Group financial statements (IFRS measures), alternative financial measures are presented that are used internally by management as key measures to assess performance.
   
2. H1 2023 has been restated in respect of a correction to the onerous contract provisions in German Rail. This has changed 2023 Group Statutory Operating Profit/Loss from £8.7m to (£9.2m), Group Statutory (Loss) Before Tax from £(23.4)m to £(41.9)m, Group Statutory Loss After Tax from £(39.4)m to £(51.9)m and H1 2023 statutory EPS from (8.3)p to (10.4)p. Please see note 1 to the Financial Statements.
3. This announcement contains forward-looking statements with respect to the financial condition, results and business of Mobico Group. By their nature, forward-looking statements involve risk and uncertainty and there may be subsequent variations to estimates. Mobico's actual future results may differ materially from the results expressed or implied in these forward-looking statements. Unless otherwise required by applicable law, regulation or accounting standard, Mobico does not undertake to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Forward-looking statements can be made in writing but also may be made verbally by members of the management of the Group (including without limitation, during management presentations to financial analysts) in connection with this announcement.  

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A live webcast of the analyst meeting taking place today at 9:00am (BST) will be available on the investor page of the Group’s website: www.mobicogroup.com.