National Express CFO to depart amidst profit decline

National Express CFO to depart: Mobico, the parent company of National Express, announced on Monday that its finance chief, James Stamp, will step down in June, following a more than 14 per cent drop in profit for 2023. The decline was attributed to reduced pandemic funding, heightened inflation, and expenses related to accounting issues at its German rail division.

The news led to a sharp decline in shares of the transport firm, plummeting nearly 11 per cent to a record low of 53.50 pence. Stamp, who assumed the role in December 2022 after a five-year tenure with the company, will be succeeded by Helen Cowing, previously the finance chief at food tech company Selecta Group.

Stamp's departure follows a challenging year for Mobico, marked by profit warnings, dividend suspensions, and delays in reporting annual results due to ongoing investigations into accounting irregularities within its German rail operations.

Despite operational challenges, Mobico, known for its bus, coach, and rail services across multiple continents, reported a profit of 168.6 million pounds ($207.63 million) for the year ending December 31, within its revised guidance range of 175 million pounds to 185 million pounds.

CEO Ignacio Garat acknowledged the revenue growth driven by passenger demand and inflation recovery measures but expressed disappointment over the lack of improvement in reported profitability. Garat emphasised the company's commitment to offsetting inflationary pressures through pricing strategies.

Looking ahead, Mobico anticipates an adjusted operating profit of 185 million euros to 205 million euros for 2024. However, analysts at Peel Hunt expressed concerns following the disappointing update, prompting a review of Mobico's rating and price target.

(with Reuters inputs)