SummaryCompanies Cuts annual profit forecastSuspends dividendsShares fall to record lowOct 12 (Reuters) - Mobico's (MCG.L) shares fell by a third to a record low on Thursday after the British transport company cut its annual profit forecast and suspended dividends, as high costs hit the group's efforts to improve profitability.
The company, which changed its name from National Express to Mobico earlier this year, said it was planning to sell its North America school bus business in early 2024 to cut debt.
The company was hit hard during the pandemic as lockdowns restricted travel and governments had to support transport operators.
Mobico's school bus business in North America has faced high costs and labour shortages.
"The profit warning just goes to show it takes more than a name change to prompt a recovery in a company's fortunes," Mould added.
Persons:
Russ Mould, AJ Bell, Mobico, Mould, Radhika Anilkumar, Nivedita Bhattacharjee, Miral Fahmy, Sharon Singleton, Jane Merriman
Organizations:
National Express, North America, U.S, Stagecoach, Thomson
Locations:
British, North America, Britain, Europe, North Africa, Bengaluru