Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Mobico shares surge as US school bus sale starts, interims jump

(Sharecast News) - Mobico shares surged by a fifth on Wednesday after the public transport operator started the sale process for its North American school bus business to cut debt and reported a jump in adjusted interim operating profit driven by positive demand and cost cuts. Profit for the six months to June 30 rose 23.8% to £71.2m while on a pre-tax basis the company narrowed losses to £1.5m from £52m a year earlier. No dividend was declared as the group, formerly known as National Express, continues to deleverage.

It still expects adjusted operating profit for 2024 to be within the range of £185m to £205m.

"An immediate priority remains the reduction of debt and leverage. With that ambition in mind, we're pleased to report that the formal process for the sale of the North America School Bus business has begun, and is progressing in line with expectations," the company said.

Covenant net debt rose to £988m from £908m, while net debt at the end of June stood at £1.24bn. Mobico said it was on track to save £30m this year and would launch further plans to deleverage in the second half.

Alsa, the company's European unit which operates across France, Portugal and Switzerland, posted a 43.2% rise in operating profit to a record £82.5m.

Reporting by Frank Prenesti for Sharecast.com

Share this article

Related Sharecast Articles

Helical joint venture secures funding for City development
(Sharecast News) - Helical announced on Friday that, in joint venture with Places for London, it had secured a £125m development financing facility from HSBC to fund the construction of 10 King William Street, an over-station office scheme above Bank station in the City of London.
Entain rallies as US hedge fund Corvex ups stake to 5.3%
(Sharecast News) - Ladbrokes owner Entain surged to the top of the FTSE 100 on Friday as it emerged that US activist hedge fund Corvex Management has upped its stake in the Ladbrokes owner to about 5.3%.
Berenberg raises target price on Pinewood Technologies
(Sharecast News) - Analysts at Berenberg raised their target price on software firm Pinewood Technologies from 455.0p to 510.0p on Friday after the group's FY24 earnings came in ahead of consensus.
Transense Technologies signs US distribution deal with Haltec
(Sharecast News) - Transense Technologies announced a strategic distribution agreement with Haltec Corporation on Friday, as part of a significant expansion of its tyre inspection tools in the US market.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.