Home Money Mobico flags £15m hit from German rail business amid results delay

Mobico flags £15m hit from German rail business amid results delay

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The former National Express group now expects adjusted operating profit for the year to be between £160m and £175m
  • It expects adjusted operating profit for the year to be between £160m and £175m

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Mobico cut its annual profit margin again on Monday after the group flagged accounting issues related to its German rail operations.

The group, which operates transport services in Britain, North America, Europe, North Africa and the Middle East, told investors that changes to the way the German transport sector determines cost recovery levels will result in a profit of around £15 million for the operating result. ..

The former National Express group now expects adjusted operating profit for the year to be between £160m and £175m

The former National Express group now expects adjusted operating profit for the year to be between £160m and £175m

Mobico shares fell 8.05 percent to 65.70p in Monday morning trading.

But the bus, coach and rail operator, which last month postponed its full-year results following an accounting review, said it expects operating profit to be at the “high end” of its new forecast range.

The FTSE 250 group’s German rail operations have been hit by an industry-wide driver shortage and volatile energy prices.

In February the company said it would publish its results “before the end of March” after auditor Deloitte warned it needed more time to complete work on the company’s German arm.

However, the group announced that it now expects to publish the results ‘in the second half of April’.

Mobico is one of the five largest operators in Germany.

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