Mobico CEO to depart amid £793m loss
Mobico Group has announced the departure of its CEO, Ignacio Garat, alongside huge losses for 2024.
The Birmingham-headquartered transport giant, previously known as National Express, has reported a statutory operating loss after tax of £793.8m for 2024.
It says the loss reflects principally non-cash adjusting items, including goodwill impairment of North American School Bus (NASB), write-off of deferred tax assets in the UK and North America, and an increased contract provision in German Rail.
Last Friday, Mobico announced that it would offload School Bus to global infrastructure investment manager I Squared Capital, which also owns Arriva Group for £457m. It expects net proceeds of £275m – £290m and net debt to be reduced following the disposal of School Bus’s IFRS 16 leases of $38m.
The market reacted strongly to the deal, with Mobico’s share price dropping by 30% on Friday. The transaction is expected to be completed early in the third quarter of 2025.
Ignacio Garat will be stepping down from his position, effective 30 April 2025, with Phil White, Chair designate, taking on the role of Executive Chair on an interim basis. Garat will remain with the Group for the next three months, moving to an advisory role to support the transition.
Helen Weir, Chair of Mobico said following the sale of NASB and full-year results announced, now was the right time for the change in leadership.
White was previously CEO of National Express Group plc between 1997 and 2006, during which time he expanded the business internationally and oversaw the transformational acquisition of Alsa.
Ignacio Garat, CEO of Mobico said: “The last two years have not been without their challenges as we have had to respond and adapt to a series of market headwinds. However, I’m proud of the role our 51,500 employees carry out each and every day to help support our customers and the communities they serve. It has been a privilege to work alongside the team.”
Regarding the full-year results, Garat said: “The Group achieved good revenue growth in 2024, with adjusted profits in line with guidance, at the lower end of the range. This performance was driven by another record result from ALSA, tight cost control, and targeted pricing actions, along with a mixed performance in the UK and the impact of continuing industry challenges in German rail.
“The sale of North America School Bus, announced on 25 April 2025, represents an important first step in strengthening our balance sheet, and we continue to explore further options to accelerate debt and leverage reduction. Looking ahead, the disposal will also enable us to reallocate capital to attractive growth opportunities across the Group, particularly in ALSA. We look forward to making progress in 2025.”
Helen Weir, Chair, commented: “Ignacio has worked tirelessly on behalf of Mobico and, on behalf of the Board, I would like to thank him for his contribution. With the sale of North America School Bus concluded, and our full-year results announced, we agreed with Ignacio that now was the right time for a change in leadership.”
Phil White added: “We must now focus on building a business that is fit for the future. Working alongside the Board and leadership team, my priorities as Executive Chair will be to accelerate the pace of operational and financial improvements, appoint a CEO for Mobico’s next chapter and to ensure that the value inherent in the Group’s portfolio is better reflected.”
