National Express parent Mobico saw its shares rise more than 12 percent after its European coach division posted its best half-yearly results on record.
The FTSE 250 (^FTMC) transport operator also confirmed that the sale process for its struggling North American school bus division is now “ongoing” and progress is “as expected”.
Mobico, which posted a 28.1 percent rise in first-half profits, will sell the unit as part of a debt reduction programme due to be implemented in the second half of the year.
The bus division is expected to generate revenue of £1.12 billion in 2023, and the group's net debt stood at £1.24 billion at the end of June.
Chief executive officer Ignacio Garratt said: “Mobico delivered a strong performance in the first half of 2024, with continued growth in passenger demand and revenue.
“Debt reduction remains a priority and, in addition to commencing the formal sale process for North American School Buses, we have identified new organic debt reduction initiatives that will deliver results in the second half of the year. We are confident that we can achieve adjusted operating profit in the range of £185m to £205m for FY24.”
Investors will not receive semi-annual dividends. Last year, Mobico decided to suspend dividend payments and not pay an interim dividend.
