Companies roundup: Mobico & Kingfisher

The former National Express, Mobico (MCG), has seen another share slide after announcing there was still a disagreement with auditors over how to account for a change in German rail pricing calculations. The company had been due to publish its 2023 results on 20 February but postponed them to the end of March. 

Now, they are expected in the second half of April. “All of the substantive work required in relation to the audit of the remainder of the group's businesses has been completed, however, a number of judgemental items relating to the German Rail business remain to be agreed between the group and its auditors,” Mobico said. The change relates to two indices used by the German rail regulator to calculate energy cost recovery for train operators. The onerous contract charge has gone from £15mn to £70mn as a result. 

Mobico’s shares were down 5.5 per cent on Monday morning, taking the year-to-date decline to 20 per cent. AH

Read more: Battle of the buses: Mobico and FirstGroup head in opposite directions

No sign of home improvement at Kingfisher

Kingfisher (KGF) issued its third profit warning in six months, with chief executive Thierry Garnier blaming the “lag” between a steady home improvements market and weaker demand for new housing.

The owner of the B&Q and Screwfix brands reported a 25 per cent drop in adjusted pre-tax profit to £568mn for the year ending in January and revised expectations for the current year down to between £490mn-£550mn, which at its midpoint is 7 per cent below current consensus forecasts of around £560mn, analysts at RBC Capital Markets said.

The company’s shares fell by 2 per cent. MF

CAML drops payout and announces new Scottish investment 

Central Asia Metals (CAML) has pushed beyond its stated dividend policy to keep up with investors expectations around its consistent payout, as profits fell in 2023 on the back of lower metals prices and higher costs. The copper, zinc and lead miner will pay total dividends of 18p a share for the year, down from 20p for 2022. The company reported Ebitda of $96.5mn (£76mn) for 2023, down a quarter on the year before. Both sales and the cash profit margin came down. “This performance has been achieved despite a challenging economic environment with metal prices deteriorating by an average of c.10 per cent across our base metal portfolio and ongoing inflationary cost pressures,” said CAML chief executive Nigel Robinson. 

More of a surprise for the year was a £3mn investment in a private Scottish mining hopeful. Robinson has said in the past the company would look at explorers in a bid to find cheap growth options, but Aberdeen Minerals is years from even thinking about building a mine. CAML’s cash will fund a drill programme which aims to find nickel and cobalt reserves, and it will get a 29-per-cent stake in the company. AH