National Express operator Mobico Group PLC (LSE:MCG) fell 4.5% to 57.35p after publishing a first-quarter update that analysts said contained "much to be concerned about" with its chief financial officer standing down after accounting issues led to its results being delayed twice.
James Stamp will depart in June, the bus and coach operator said, as results for 2023 finally arrived towards the lower end of the guidance range.
An update for trading in the first three months of 2024 also showed lower revenues in Germany and North America.
UK revenues were up by 9.5% year-on-year, driven by rising prices and passenger growth for UK Bus, but flattered by the non-recurrence of the driver strike disruption seen last year.
North America revenues fell 0.8% on a reported basis but were up 3.5% in constant currencies as school bus revenues were broadly flat despite a larger-than-usual number of heavy snow days.
Spanish subsidiary ALSA grew revenues by 8.7%, with long haul passenger numbers rising 25% and regional bus passenger numbers up 17%.
Broker Peel Hunt said the trends in North America and Germany were "concerning".
The 2024 adjusted EBIT guidance of £185-205 million is below Peel's £212.5 million forecast, with guidance weighted to the second half due to the phasing of the cost-reduction programme.
Analysts noted that covenant gearing increased from 2.8x to 3x in 2023, and the group needs to refinance a £480 million revolving credit facility by April 2025 and £500 million hybrid by February 2026, "while the poor performance of the North American business means that its disposal would be unlikely to achieve a decent value".
Broker Liberum noted that 2023 results were "below consensus and came in towards the lower end of the guidance range, despite management having stated a month ago that the upper end of the range was more likely".