RE: Next stop Bankruptcy25 Apr 2025 08:42
I'm confused at this part:
Net Proceeds and Use of Proceeds:
"After repayment of School Bus non-IFRS 16 leases (approximately $75 million as at 31 December 2024), the remainder of the Net Proceeds will initially be held as cash. The Board continues to consider the £500 million hybrid bond as a core element of the capital structure, providing important financial flexibility as the business continues to balance deleveraging with investment for growth. Any decisions about the hybrid - or any other element of the capital structure - will be taken at the appropriate time."
So no actual debt reduction?
Financial Effects of the Transaction
"As noted above, with the Net Proceeds initially used to reduce the Group's net debt, the Transaction is likely to be dilutive to Group earnings in the short-term. Over time, however, the Group will seek to balance continued deleveraging whilst focusing on opportunities to drive incremental earnings and cash flow growth and value accretion for shareholders. Given the impact of the Transaction, the Board will review the Group's medium-term financial targets and will provide an update in due course. During 2024 and 2025, Mobico will incur restructuring costs relating to the separation of School Bus as well as incremental costs as a result of separation and redeployment of central costs."
Did they tell us that previously? I don't remember this being an issue.
"The Transaction includes an earn-out of up to $70 million, payable by I Squared to Mobico, contingent on School Bus meeting certain financial performance thresholds over a 3-year period post-completion of the Transaction. There is a risk that these thresholds may not be met for one or more of the relevant years, which would result in Mobico not receiving the earn-out payments for the relevant year."
So doubtful to receieve the payouts in near term....
Current Trading for the Group
"Since 30 June 2024, the Group has continued to deliver good revenue growth and expects to deliver FY24 Group Adjusted Operating Profit in line with, albeit at the lower end of, guidance. The Group expects to deliver a significant statutory loss as a result of goodwill write-offs, derecognition of deferred tax assets and further Onerous Contract Provisions relating to its German business."
... "As a result, UK & Germany is expected to deliver a negligible Adjusted Operating Profit/Loss for FY24, with a further approximate £85 million charge to the Group's FY24 statutory result relating to an increase in the German Rail onerous contract provision"
More privisions and writeoffs.....
But wait....
"School Bus has delivered improved growth in 2024, reflecting the first net-positive route outcome for this school year bid season in over a decade."
So they sold for peanuts the only improving segment which is actually finally resulting in positive bid season for the first time in 10 years, which actual growth.
Sign In
Follow the stocks
