Mobico Group PLC (LSE:MCG), formerly known as National Express, is the top faller in the FTSE 250 after warning higher costs are hitting profits.
Shares in the bus and train operator have lost nearly a third of their value, down 31% at 59p.
Group revenue growth was up 10% year on year but the path to improving profitability was impacted by higher costs, "particularly in the UK and in North America School Bus as a result of investment in a strong operational school year start up”, the firm said in a statement.
It now expects financial 2023 EBIT in the range of £175 million to £185 million which Peel Hunt pointed out was at least 10% less than its £205 million forecast.
The firm plans to sell its North America School Bus business and has suspended the final dividend.
Mobico plans further cost efficiencies and expects to deliver an additional £20 million annualised savings on top of those already announced.
Ignacio Garat, chief executive, said: “We recognise that the recovery of our profitability will take longer than we had previously expected.“