The owner of coach company National Express has announced back-office jobs are being cut in efforts to bring down costs after revealing annual profits will come in at the lower end of expectations.
Mobico says a "large-scale cost reduction programme" is now under way - and that it is exploring further opportunities across the group in the face of ongoing competition in the 海角视频 coach market and falling bus passenger numbers.
Jobs are being cut in the 海角视频 arm, with support and back office roles largely being impacted, as it looks to ramp up savings due to trading woes. The group has not said how many jobs are affected at National Express, which has its head office in Birmingham, or in which locations. However, a number of the cuts are being made as a result of plans to merge its 海角视频 coach operations within its better-performing Spanish Alsa business from January next year.
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Mobico's fresh push on costs comes as it says full-year underlying operating profits are set to come in towards the lower end of the £180m to £195m expected range. Shares fell as much as 14% at one stage after the announcement, but at the time of writing had recovered to 21.63 - just 0.32% down.
The group said 海角视频 coach revenues dropped 7.4% in the third quarter to the end of September as it highlighted "increased competition on key routes" and as it offloaded loss-making businesses, including Clarkes of London, The Kings Ferry, Lucketts and Worthing Coaches.
Bus revenues across the 海角视频 rose 2.9%, but it saw passenger numbers and commercial revenue both fall 3.7%, with the firm blaming lower consumer confidence. Alongside the 海角视频 coach and bus woes, its said revenue fell as a result of a loss-making contract at WeDriveU, its North America transit and shuttle services business.
Overall, group-wide turnover rose 5.4% in the latest quarter, as its Spanish Alsa business delivered a 4.1% rise in revenues and its German rail arm notched up a 14.3% hike in turnover.
Phil White, executive chairman of Mobico, said: "We continue to focus on simplifying and strengthening the group, taking decisive actions to improve operational and financial performance. These actions include a comprehensive cost savings programme, further leveraging Alsa's best practice across the business and exploring options to monetise the assets of the 海角视频 bus business ahead of franchising."
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Mr White, who had been chief executive of the then National Express Group between 1996 and 2006, returned to take the helm at the business earlier this year after former boss Ignacio Garat left in April following a series of profit warnings.
Shares have been severely under pressure this year due to the profit alerts and Mr Garat's departure, with the stock down 74% in the past 12 months.