The Mobico Group Board has announced an interim dividend of 1.7p, which is in line with their previously communicated policy that the Group's interim dividend will be set at a level equivalent to approximately one third of the prior full year dividend. The Group's policy is to maintain a dividend cover ratio in excess of two times. The interim dividend will be paid on 1 September 2023 to shareholders on the register at the close of business on 4 August 2023.
Other financial highlights include:
Strong revenue performance up 19%, driven by:
o Strong growth across all business lines in ALSA
o North America delivering good price increases of over 13% on the 40% contracts that were up for renewal this bid season
o UK revenues up 20% reflecting strong growth in passengers in Coach and Bus partly offset by the impact of reduced Bus funding
Adjusted Operating Profit down on H1 2022 as a result of a reduction in Covid-19 funding of £60m. Excluding this, Group Adjusted Operating Profit has increased by £27m, driven by the strong revenue performance
Group Operating Profit is £8.7m (H1 2022: £42.3m) as a result of the the reduction in Covid-19 funding
Cost inflation came before price rises and cost actions that will be delivered in H2. Actions already taken give confidence in stronger than normal H2 weighting
Annualised cost savings of £30m higher than previously announced (£25m), with £15m savings expected in H2 23
Strong cash generation in H1 with Free Cash Flow of £79.7m (£63.8m in H1 22) with over 100% FCF generation
Improved debt maturity and liquidity with a £600m RCF refinanced to 2028, and £400m bond refinancing on track for delivery in Q3 23
US Leadership change and UK restructure to accelerate Evolve strategy and support growth agenda
2023 Full Year Adjusted Operating Profit expected to be between £200m and £215m
