Mobico's chief executive is set to resign as the group grapples with ongoing financial difficulties.
Ignacio Garat will leave his position at the end of April after nearly five years at the helm, during which he supervised the group's rebranding from National Express in 2023, as reported by .
Phil White, Mobico's chair and former CEO of National Express Group from 1997 to 2006, will assume the role on a temporary basis while the hunt for a successor commences.
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Garat's exit comes as the company continues to wrestle with enduring financial issues that originated during the pandemic and have resulted in a more than 80 per cent drop in shares over the past five years.
The stock plummeted last year following audit problems that delayed the publication of its full-year results and led to the departure of former finance chief, James Stamp. It has further declined by 52 per cent in the last six months.
On Tuesday, Mobico announced that annual pre-tax losses had expanded from £43.2m to £519.9m, on a statutory basis.
Last week, the owner of National Express sold its North American school bus division, which has consistently burdened earnings due to staff shortages and inflation.
However, investors were ultimately disappointed by the final sale price and a warning from Mobico that it anticipated annual operating profit at the lower end of previous guidance.
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"We must now focus on building a business that is fit for the future," said interim chief Phil White.
"Working alongside the Board and leadership team, my priorities as Executive Chair will be to accelerate the pace of operational and financial improvements, appoint a CEO for Mobico's next chapter and to ensure that the value inherent in the group's portfolio is better reflected."
Ignacio Garat stated: "The last two years have not been without their challenges as we have had to respond and adapt to a series of market headwinds."
He added: "However, I'm proud of the role our 51,500 employees carry out each and every day to help support our customers and the communities they serve. It has been a privilege to work alongside the team."