- Diverging valuations for major transport groups
- FirstGroup upgrades as Mobico downgrades
Mobico's (MCG) third quarter trading update would have been disappointing in its own right, but it had the misfortune to downgrade profits just 24 hours after FirstGroup (FGP) upped its own forecasts.
The bus and coach operator – formerly National Express – cut operating profit forecasts for 2023 from £200mn-£215mn to £175mn-£185mn, and suspended the final dividend just a few months after resuming payouts. However, the situation was made to look worse by FirstGroup (FGP) releasing a sunny statement. Far from lowering its expectations, FirstGroup boosted its full-year adjusted operating profit guidance by £14mn-£20mn on the back of strong passenger volumes and productivity improvements.