UK transport firm Mobico suspends dividend, cuts forecast on slow recovery (updated)

Saltlux

12/10/2023 07:33

(Adds dividend suspension in paragraph 1, plan to sell a unit
in paragraph 2)
       Oct 12 (Reuters) - Britain's Mobico  MCG.L  cut its
operating profit forecast for the year and suspended its
dividend on Thursday, saying surging costs were making a full
recovery in profitability take longer than expected.   
        The company, previously known as National Express, also
said it was planning to sell its North America School Bus
business in early 2024.  
    The transport operator expects operating profit for the year
to be about 175 million pounds to 185 million pounds ($215.60
million $227.92 million) down from its earlier forecast of
between 200 million pounds and 215 million pounds.
    Mobico did not say when it expects profitability to recover
fully. 
    
($1 = 0.8117 pounds)

 (Reporting by Radhika Anilkumar and Yadarisa Shabong in
Bengaluru; Editing by Nivedita Bhattacharjee)
 ((Radhika.Anilkumar@thomsonreuters.com;))