FY24 Adjusted Operating Profit in-line with guidance with continued revenue growth and disciplined cost management

Announced sale of North American School Bus an important step in reducing net debt

Download full announcement in PDF format

Full Year results, twelve months ended 31 December 2024

Summary

Group

• FY 24 Adjusted Operating Profit in line with market guidance, growth of 11.3% to £187.7m
• Statutory Group operating Loss after Tax of £793.8m
  • Reflects principally non-cash adjusting items including goodwill impairment of NASB, write-off of deferred tax assets in UK and North America, and an increased onerous contract provision in German Rail; see adjusting items section below
• Continued Group revenue growth* of 8.3%
  • Record progress at ALSA + further growth in WeDriveU (WDU) & School Bus (NASB) + good progress in UK Bus
• Covenant gearing reduced to 2.8x
  • Good Free Cash Flow generation of £210.2m (£163.7m in FY23)
  • Organic debt reduction initiatives delivered targeted £25m of benefits in the year
  • Ample liquidity with no maturities for over 24 months and intention to refinance well ahead of time
• Announced sale of North America School Bus for an enterprise value of up to $608m
  • Expected upfront net proceeds of approximately $365 - 385 million^#
  • Delivers on the Group’s commitment to accelerate net debt reduction – with further deleveraging options under review
  • Enables the Group to reallocate cash flows from the capital-intensive School Bus business
  • Creates a simpler portfolio with a stronger platform to delever alongside allowing the Group to focus strategically on fully unlocking ALSA’s high quality growth and return potential
• Important Board and management appointments
  • Phil White as Chair from 1 May 2025, Francisco (Paco) Iglesias as Group COO (ongoing ALSA CEO) to drive operational improvements, and Kevin Gale as UK & Germany CEO, bringing substantial transport experience

Divisions

• ALSA
  • Delivers another record performance in FY 24
  • 13.9% growth in revenue, driven by Regional and Long Haul
  • Continuing diversification with strong growth in International and New Markets
• North America
  • Revenue growth of 8.0% reflects NASB route wins prior to disposal
  • Whilst NA School Bus EBIT has grown $6.2m persistent market challenges such as driver wage inflation and increased maintenance costs has meant that FY 24 performance was below expectations and impacted future forecasts leading to a goodwill impairment.
  • Continuing organic revenue growth (18.9% vs FY 23) in newly separated and strengthened WeDriveU
• UK & Germany:
  • In UK Bus an improved funding agreement agreed with TfWM for 2025 as an important first step towards sustainable profitability. UK Bus benefitted from an increase in demand for services and the benefit of price rises, with commercial passenger numbers up 9.5% and a price increase from July 2024 of 6% being implemented.
  • Significant restructuring within UK Coach making progress, with margin upside expected in FY 25 from a range of different initiatives
  • German Rail performance reflects continuing industry challenges. Discussions with local PTAs are ongoing and remain constructive

Outlook

• Further to the appointment of the new chair Philip White, effective 1^st May 2025 and the North America School Bus transaction, we expect provide a trading update ahead of the AGM in June 2025.
• In FY25, on a continuing business basis, the Group expects to make continued revenue and adjusted operating profit progress, with further strong performance from ALSA and ongoing growth in WeDriveU, alongside further recovery in UK & Germany
• Sale of North America School Bus expected to complete early in Q3
• Group expects Covenant Gearing to remain broadly neutral for FY25 depending on the timing of, and closing adjustments for, the disposal of North American School Bus. The Group continues to target organic reduction to 1.5-2.0x range over time

^{*All revenue performance numbers are expressed on an organic, constant currency basis (OCC).}

^{# Net upfront proceeds for covenant deleveraging, after deduction for debt-like items including IFRS 16 leases, deferred capital expenditure, and other items, as well as transaction fees. The net proceeds figure does not include the earn-out amount. The final amount of Net Proceeds will be subject to customary completion adjustment by virtue of the completion accounts mechanism and dependent on the timing of completion.}

Ignacio Garat, Mobico Group Chief Executive, said:

“The Group achieved good revenue growth in 2024, with adjusted profits in line with guidance, at the lower end of the range. This performance was driven by another record result from ALSA, tight cost control, and targeted pricing actions, along with a mixed performance in the UK and the impact of continuing industry challenges in German rail.  The sale of North America School Bus, announced on 25 April 2025, represents an important first step in strengthening our balance sheet, and we continue to explore further options to accelerate debt and leverage reduction. Looking ahead, the disposal will also enable us to reallocate capital to attractive growth opportunities across the Group, particularly in ALSA. We look forward to making progress in 2025.”

Enquiries

Mobico Group 

Headland

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. 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. FY 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 £(21.4)m to £(43.2m), Group Statutory (Loss) Before Tax from £(98.3m) to £(120.1m) Group Statutory Loss After Tax from £(162.7)m to £(184.2)m and FY 2023 statutory EPS from (30.2)p to (33.7)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.