(Sharecast News) – Transport operator Mobico, formerly known as National Express, swung to an interim pre-tax loss as Covid support funding was reduced and wage costs increased.
The company on Thursday posted a pre-tax loss of £23.4m, compared with a profit of £20.5m a year earlier when passenger numbers had fallen due to the pandemic. However, group revenues increased 18.5% to £1.57bn driven by price increases in the US and a strong performance from its ALSA business.
Chief executive Ignacio Garat said the profit result was impacted by a £60m reduction in Covid-19 funding.
“In addition, we have seen significant wage inflation however, we expect this to be recovered – as planned – in the second half.”
“Although there remain some market uncertainties, encouraging passenger growth, pricing power, continued pipeline conversion, high levels of contract retention, the actions we have taken on pricing and costs, and the ongoing successful mobilisation of contracts all support our confident full-year outlook.”
Mobico said it expected annual adjusted operating profit within a range of £200m – 215m.
Reporting by Frank Prenesti for Sharecast.com