- James Stamp will be replaced by Helen Cowing, who used to be Fat Face’s CFO.
- Mobico twice delayed the publication of its 2024 results due to accounting problems
Mobico Group’s finance chief will resign in two months after accounting problems caused another hefty full-year loss.
James Stamp became chief financial officer of the transport company in November 2022, but will leave his role at its annual general meeting on June 11 after a difficult tenure.
His departure comes as Mobico, which changed its name from National Express last year, finally published its 2023 results on Monday after twice delaying them due to accounting problems at its German rail division.
Bad trip: Birmingham-based Mobico Group posted a loss of £162.7 million last year, although it was 30 percent smaller than the £231.2 million loss recorded in 2022.
Germany’s statistics office recently changed the indices used to determine energy cost recovery for passenger transit authorities.
Consequently, Mobico reduced the profitability of its German railway division to take into account high inflation, volatile energy prices, lower productivity and a shortage of train drivers.
This contributed to the Birmingham-based company posting a loss of £162.7 million last year, although it was 30 per cent less than the £231.2 million loss recorded in 2022.
Ignacio Garat, CEO of Mobico, said the extra work related to the division “was regrettable, but it is now completed.”
Mobico’s profits were further hit by £30m in restructuring costs, much lower Covid-19 subsidies and a weaker-than-expected recovery in UK bus passenger numbers amid bus strikes. drivers for salaries.
In comparison, the group’s UK coach segment saw customer volumes rise by a quarter, partly due to repeated strikes by railway workers.
It also achieved record revenues and profits at its Spanish business, ALSA, surpassing £1 billion for the second year running, thanks to price increases and a surge in demand for long-haul travel.
Meanwhile, ALSA returned to an operating profit of £121m, having posted a loss of £170.2m the previous year due to a significant cash impairment due to rising discount rates.
Outgoing finance director Stamp will be replaced by Helen Cowing, who was previously chief financial officer of food and vending operator Selecta Group, manufacturer Ideal Standard International and lifestyle brand Fat Face.
Helen Weir, president of Mobico, said Stamp “has demonstrated considerable dedication as we seek to guide the business through a challenging macroeconomic environment, managing the impacts of high inflation and adapting to a post-Covid world.”
Mobico group actions fell 6.2 per cent to a record low of 56.3p following the announcement of Stamp’s departure, meaning they have lost around 54 per cent of their value in the last 12 months.
They previously fell to a record low last October when the company declared a profit warning and suspended dividends as part of cost-cutting measures.
For next year, Mobico forecasts adjusted operating profits of £185 million to £205 million, compared to £168.6 million in 2023.