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National Express owner Mobico saw shares jump over 12% as its European coach and bus segment delivered a record half-year.
The FTSE 250 (^FTMC) transport operator also confirmed the process of selling off its struggling North American School Bus unit is now “underway,” with progression “in line with expectations.”
Mobico, which posted a 28.1% jump in its first-half profit, is selling the unit as part of a debt-cutting programme set to be rolled out in the second half of this year.
The bus unit generated £1.12bn in revenue in 2023, while the group’s net debt at the end of June stood at £1.24bn.
CEO Ignacio Garat said: “Mobico has delivered a good performance in the first half of 2024, with continuing positive passenger demand and revenue growth.
“Addressing our leverage remains a priority and in addition to commencing the formal sale process for North American School Bus, we have identified new organic debt reduction initiatives that will deliver in the second half. We remain confident of achieving FY 24 adjusted operating profit of between £185m and £205m.”
Investors will not receive a half-year dividend payout. Last year, Mobico suspended its dividend and decided not to pay an interim dividend.