REG - Mobico Group PLC - Q3 Trading Update

MobicoAnnouncement

07/11/2024 07:00

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RNS Number : 2668L  Mobico Group PLC  07 November 2024

Mobico Group Plc ("Mobico" or "Group") today reports its Trading Update

for the period 1 July 2024 to 30 September 2024 ("Q3" or "the period").

 

On track to achieve FY 24 adjusted Operating Profit guidance in the range of
£185m to £205m

 

·      Continuing growth in passenger demand has driven group revenue
growth of 12% in the period

 

·      Previously announced productivity and cost reduction programmes on
track to deliver £40m in FY 24 and £50m annualised savings thereafter

 

·      Plans for organic deleveraging progressing well, with £25m cash
savings targeted in FY 24 and £50m for FY 25

 

·      Process for the planned divestment of North America School Bus
business is on track, and an update will be provided in due course

 

·      Negotiations with the German PTAs are progressing

 

 

Ignacio Garat, Group Chief Executive, said:

"As we move into the closing months of the year, we are on-track to deliver FY
24 adjusted Operating Profit in the range of £185m to £205m, in-line with
our earlier guidance. Mobico is a portfolio business engaged in delivering
industry-leading, low-carbon transport solutions, and consequently improving
social mobility across all of the communities that we serve. As we move at
pace to strengthen the foundations of our business - including through our
focus on reducing leverage - improving returns will follow. We look forward to
providing further updates on our progress."

 

ALSA

ALSA revenues grew by 23% vs. Q3 23

Revenues reflect good growth across the portfolio, as well as the acquisition
of CanaryBus which completed in March 2024, an important acquisition that
reinforces ALSA's position in this important market. CanaryBus performance is
on track to the business case.

Long Haul revenue increased by 15%, driven by ongoing strong demand with
passengers up 14% on the 9 main corridors as a result of the Young Summer
voucher scheme which was repeated in 2024, and of favourable impact July to
September. This scheme ended on 30 September, but positive momentum continues
into Q4, supported by the ongoing multivoucher scheme, in place until the end
of the year.

In the Regional business, revenue increased by 13%, driven by a 9% rise in
passenger numbers on contracts subject to variable passenger demand; this was
also boosted by the voucher schemes. Urban similarly has shown strong growth
with revenue up 8% and passengers up 7%.

 

North America

North America revenue grew by 19% vs. Q3 23

In School Bus, Q3 trading was strong with revenue growing by 11% due to rate
increases and additional route volumes. The process for the planned divestment
is on track, and an update will be provided in due course.

WeDriveU revenue increased by 29% on Q3 23 following new contract wins
(notably Longwood and Uber) with WeDriveU benefitting as some customers
consolidate their supplier relationships and concentrate on the best
performing providers.

 

UK

In the UK, revenue reduced by 2% vs Q3 23 driven by the UK Coach Business,
which benefited from rail strikes in the same period last year.

The UK business continues to execute a large scale, complex turnaround.  As
part of the transformation, work has continued on route optimisation and
efficiencies. This has had a modest, negative impact on revenues, together
with some softening in UK airports' Summer passenger demand.

 

UK Coach

Revenues in the UK Coach business declined by 3%. When the positive impact of
rail strikes is excluded from the year on year comparison, UK Coach revenue
grew by 4% in Q3 24 on a normalised basis.

In NXTS, the UK Private Hire business, progress continues to be made with
right-sizing the cost base, following the closure of two depots and further
structural cost review. We completed the disposal of Mortons, a small private
hire operator, in September.

 

UK Bus

Bus commercial revenues were 2% higher than in Q3 23 with passenger volumes 5%
higher, offset by government subsidy incentives to promote public transport,
recorded as grant income, rather than commercial revenue.

Discussions with TfWM are ongoing, regarding the current partnership
arrangement which ends in December 2024, and potential arrangements
thereafter.

 

Germany

Revenue in Germany declined by 21% vs Q3 23, including the industry-wide
driver shortages.

Negotiations with the German PTAs are on track to address the impact from
those ongoing industry challenges. Under the terms of the current contracts,
all parties are motivated to find a sustainable and commercially viable
solution.

 

Enquiries

 

 Helen Cowing, John Dean       Mobico Group  Tel: +44 (0)121 803 2580
 Matt Denham, Antonia Pollock  Headland      Tel: +44 (0)7734 956 201

                                             Tel: +44 (0)7789 954 356

 

About Mobico

Mobico is a leading, international shared mobility provider with bus, coach
and rail services in the UK, North America, continental Europe, North Africa
and the Middle East.

 

Notes

Legal Entity Identifier: 213800A8IQEMY8PA5X34

Classification: 2.2 for the purposes of DTR 6 Annex 1

Forward looking statements and other important information

This document contains forward-looking statements with respect to the
financial condition, results and business of Mobico Group PLC. By their
nature, forward-looking statements involve risk and uncertainty and there may
be subsequent variations to estimates. Mobico Group PLC'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 document.

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