National Express owner’s chief executive runs out of road
Mobico’s chief executive is to step down as the group struggles to turnaround persistent financial struggles.
Ignacio Garat will depart at the end of April after nearly five years in the top job, in which he oversaw the group’s rebrand from National Express in 2023.
Mobico chair Phil White, who served as CEO of National Express Group between 1997 and 2006, will take over on an interim basis as the search for a successor gets underway.
Garat’s departure comes as the firm continues to grapple with long-running financial problems, which began during the pandemic and has seen shares fall more than 80 per cent in the last five years.
The stock collapsed last year after audit issues delayed publication of its full-year results and led to the departure of former finance chief, James Stamp. It has fallen a further 52 per cent in teh last six months.
Mobico on Tuesday said annual pre-tax losses had widened from £43.2m to £519.9m, on a statutory basis.
The owner of National Express last week sold its North American school bus division, which has long weighed on earnings amid staff shortages and inflation.
But investors were ultimately disheartened by the final price tag and a warning from Mobico that it expected annual operating profit at the low end of prior guidance.
“We must now focus on building a business that is fit for the future,” interim chief Phil White said.
“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.”
Ignacio Garat 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.”