Mobico Group PLC (LSE:MCG) shares jumped 15% as a storming performance by Spanish arm ALSA offset slides in UK profits and ongoing issues in its German rail arm.
The National Express owner added it had formally started the sale process for its US yellow school bus business, with cutting its £1 billion debt level now a key priority.
Revenues in the half year to June rose by 5.4% to €1.65 billion, led by AlSA with UK turnover also rising.
Operating profits increased by 24% to £ 71.2 million while pre-tax losses dropped to £1.5 million from £41.9 million.
ALSA’s contribution jumped 43% to £82.5 million, while the US was up 55% though the UK and Germany posted losses.
Operating profit guidance for the full year was maintained at between £185-205 million, but there was no interim dividend.
Ignacio Garat, chief executive, said it had been a good half year with ALSA posting record numbers, while it had identified new debt-cutting measures for the second half.
Mobico added that in the UK it was preparing for the new franchise systems for buses proposed by the government and is confident it will maintain its commercial success whatever the model introduced.