Mobico Boss to Depart After German Rail Accounting Issues
Quote from VATcal on 22/04/2024, 20:10James Stamp, Mobico Group's finance chief, is set to step down in two months after accounting problems in the German rail division contributed to another significant annual loss.
Stamp, who took the helm as Chief Financial Officer (CFO) in November 2022, will leave at the company's Annual General Meeting (AGM) scheduled for June 11th. His departure follows a turbulent tenure marked by delays in publishing Mobico's 2023 results.
The Birmingham-based transport firm, formerly known as National Express, was forced to postpone its financial results twice due to complexities arising from accounting irregularities within its German rail operations.
Germany's statistics office recently altered the indices used to calculate energy cost recovery from passenger transport authorities. This prompted Mobico to adjust the profitability of its German rail arm downwards, factoring in high inflation, volatile energy prices, reduced productivity, and a shortage of train drivers.
These adjustments ultimately contributed to Mobico posting a £162.7 million loss for 2023. While this represents a 30% improvement on the £231.2 million loss recorded in 2022, it remains a significant financial setback.
Mobico CEO Ignacio Garat acknowledged the "regrettable" additional workload necessitated by the German rail accounting issues but confirmed their resolution. The company looks to move forward with a clean slate.
The search for a replacement CFO is likely to commence shortly.
James Stamp, Mobico Group's finance chief, is set to step down in two months after accounting problems in the German rail division contributed to another significant annual loss.
Stamp, who took the helm as Chief Financial Officer (CFO) in November 2022, will leave at the company's Annual General Meeting (AGM) scheduled for June 11th. His departure follows a turbulent tenure marked by delays in publishing Mobico's 2023 results.
The Birmingham-based transport firm, formerly known as National Express, was forced to postpone its financial results twice due to complexities arising from accounting irregularities within its German rail operations.
Germany's statistics office recently altered the indices used to calculate energy cost recovery from passenger transport authorities. This prompted Mobico to adjust the profitability of its German rail arm downwards, factoring in high inflation, volatile energy prices, reduced productivity, and a shortage of train drivers.
These adjustments ultimately contributed to Mobico posting a £162.7 million loss for 2023. While this represents a 30% improvement on the £231.2 million loss recorded in 2022, it remains a significant financial setback.
Mobico CEO Ignacio Garat acknowledged the "regrettable" additional workload necessitated by the German rail accounting issues but confirmed their resolution. The company looks to move forward with a clean slate.
The search for a replacement CFO is likely to commence shortly.
