National Express owner Mobico Group PLC (LSE:MCG) saw shares drop 7.7% on Tuesday after it delayed the release of its full-year results.
The FTSE 250-listed company said it believed the accounting judgments of its German rail business should be subject to further review by its management before Deloitte completes the audit.
Publication of the results has therefore been pushed back from February 29 to before the end of March, with details on an exact date to be released in due course.
Underlying earnings for the transport company are expected to keep in line with the guidance issued in the third quarter of between £175 and £185 million.
ASLA, the group’s European bus and coach brand, is said to have delivered a “strong performance” while UK and US operations kept in line with expectations.
In Germany, business has been impacted by driver shortages, high energy price volatility and weaker energy cost recovery.
“As a result, and subject to the conclusion of the review mentioned above, the Group currently expects the onerous contract provision as at 31 December 2023 to increase by between £40m - £70m which will be utilised over the remaining life of the contract between 2024 and 2033,” Mobico added.
Mobico is down more than 37% in the last twelve months, with shares trading at around 79.5p.