Mobico Group PLC: Full Year Results for the year ended 31 December 2023

22 April 2024 7:00 AM

Continued revenue growth driven by passenger volumes, route recovery and pricing, with profitability impacted by inflationary pressures, and £105m reduction in Covid related support

Further benefits to come from pricing and restructuring, alongside continued volume growth

Review of accounting judgements in relation to German Rail business completed2 FY 24

Adjusted Operating Profit expected to be in the range £185 - £205m

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Full Year results, twelve months ended 31 December 2023


FY 2023

FY 2022 (Restated) 2

Change (Reported)

Change (Constant FX)

Group Revenue





Group Adjusted1 EBITDA





Group Adjusted1 Operating Profit





Group Adjusted1 Profit Before Tax





Free cash flow





Covenant net debt





Covenant gearing





Adjusted basic1 EPS




Dividend per share




Return on Capital Employed






Group Operating (Loss)




Group (Loss) Before Tax

£ (98.3)m



Group (Loss) After Tax





Basic EPS



  • Revenue growth of 12.2%, with continued delivery on pricing and passenger volume increases across the Group, including record year at ALSA and driver & route recovery in North America School Bus
  • Adjusted Operating Profit decreased to £168.6m (FY 22: £197.3m) as benefits of volume recovery and in-year benefit from pricing and Accelerate 1.0 cost reduction programme were offset by cost inflation, reduction in Covid subsidies, and lower profitability in Germany
  • Statutory Operating Loss of £21.4m (FY 22 restated: £173.5m Loss, following £260.6m ALSA impairment), impacted by £30m restructuring costs and £99m charge to the German Rail onerous contract provision
  • ALSA delivers record revenues and profits in its centenary year
  • New divisional leadership: North America School Bus – strong school year start-up with continued pricing recoveries and preparations for disposal on track; UK & Germany - UK restructuring (including NXTS turnaround) underway
  • German contract profitability reduced (and onerous contact provisions increased) as a result of industry wide labour scarcity, lower productivity, market volatility in energy prices and persistent high inflation
  • Further pricing and restructuring benefits to come with ‘Accelerate 1.0’ delivering at least £30m annualised savings, and ‘Accelerate 2.0’ well underway targeting at least £20m annualised savings
  • 43 new contracts won, worth over £1bn in total contract value and c.£126m in annualised revenue, with average ROCE of 23%, in line with Evolve strategy. Mobilised in new key target cities, including Porto, Seville and Charleston as well as multi-modal hub expansions in Madrid, Chicago, Boston, and Geneva
  • Covenant net debt of £987.1m (FY 22: £985.8m) with covenant gearing of 3.0x (FY 22: 2.8x). Compared to a covenant test limit of 3.5x.
  • Improved debt maturity and liquidity with £600m RCF refinanced to 2028, and €500m bond refinanced to 2031.
  • FY 24 Adjusted Operating Profit expected to be between £185m and £205m


Ignacio Garat, Mobico Group Chief Executive, said:

“Our 2023 results are below the expectations we set ourselves at the beginning of the year.The delays  due to the additional work relating to the German Rail business was regrettable but it is now concluded.3 Although Group revenue growth was encouraging, driven by passenger demand and actions taken to recover inflation, this has not translated into an improvement in reported profitability.”

“I am nevertheless encouraged by the progress we have made in transforming the business, with the new leadership we have appointed in North America School Bus and the UK & Germany making a tangible impact and the first phase of our Accelerate cost efficiency program delivering ahead of expectations.”

“Our focus remains on delivering the benefits of our restructuring programs and in recovering inflationary costs through pricing, while maintaining a relentless focus on the quality of our offering to support growth. Opportunities remain to create a more appropriate and sustainable cost structure and we will not hesitate to take action where there is a clear strategic and financial benefit.”

“I’d like to pay tribute to all of our employees, customers and stakeholders for their considerable efforts and support as we lead the modal shift from cars to mass transit, improving social mobility and reducing carbon emissions.”


Mobico Group 

James Stamp

John Dean

+44 (0)121 803 2580


Stephen Malthouse

+44 (0)7734 956 201

Matt Denham

+44 (0)7551 825 496



This announcement contains forward-looking statements with respect to the financial condition, results and business of Mobico Group PLC (“Mobico” or the “Group”). By their nature, forward-looking statements involve risk and uncertainty and there may be subsequent variations to estimates. Mobico’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 announcement.

Note 1: The results are presented on an adjusted basis to show the performance of the business before adjusting items. For the 12 months to 31 December 2023, these principally comprise; intangible amortisation for acquired businesses, re-measurement of historic onerous contract provisions and impairments, re-measurement of the WeDriveU Put Liability, repayment of UK CJRS grant income ('furlough') and Group wide restructuring and other costs. In addition to performance measures directly observable in the Group financial statements (IFRS measures), alternative financial measures are presented that are used internally by management as key measures to assess performance.

Note 2: 2022 restated in respect of a correction to the German Rail onerous contract provision. Please see note 1 to the Financial Statements.

Note 3: More detail can be found in the German divisional overview below.

Legal Entity Identifier: 213800A8IQEMY8PA5X34

Classification: 2.2 for the purposes of DTR 6 Annex 1

The information contained within this announcement is deemed by Mobico to constitute inside information as stipulated under the Market Abuse Regulation (EU) No.596/2014 as it forms part of domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018. By the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

The person responsible for arranging for the release of this announcement on behalf of Mobico is Simon Callander, General Counsel and Company Secretary.

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