Mobico Group (MCG) Trading Update summary

Financial performance and guidance

• On track to achieve FY24 adjusted operating profit guidance of £185m–£205m, supported by 12% group revenue growth in Q3.

• Productivity and cost reduction programs are set to deliver £40m in FY24 and £50m in annualized savings.

• Organic deleveraging progressing, targeting £25m cash savings in FY24 and £50m in FY25.

Segment performance

• ALSA revenues grew 23% year-on-year, aided by the CanaryBus acquisition and strong demand, especially in long haul and regional segments.

• North America revenue increased 19%, with school bus revenue up 11% and WeDriveU up 29% due to new contracts.

• UK revenue declined 2%, mainly due to normalization after last year's rail strikes and ongoing transformation efforts.

• Germany revenue fell 21% due to industry-wide driver shortages; negotiations with PTAs are ongoing to address challenges.

Strategic initiatives and operational updates

• Divestment process for the North America School Bus business is progressing as planned.

• Route optimization and cost base right-sizing continue in the UK, including depot closures and the sale of Mortons.

• Discussions with TfWM are ongoing regarding future partnership arrangements for UK Bus.

• Management remains focused on strengthening business foundations and reducing leverage to improve returns.