Earnings Calls

Last Earnings Call

Fiscal Period
Q2 2025
Call Date
Sep 9, 2025
AI Summary
Q2 2025

Revenue Growth: Group revenue rose 7% year-on-year to GBP 1.3 billion, driven mainly by strong performance in ALSA and WeDriveU.

Profitability Challenge: Adjusted operating profit fell by GBP 8.7 million to GBP 59.9 million, mainly due to operational problems in WeDriveU and underperformance in several divisions.

Guidance Reaffirmed: Management expects full-year 2025 profit to be in line with previous guidance of GBP 180–195 million.

ALSA Strength: ALSA remains the group's strongest business, with double-digit underlying profit growth and successful diversification.

Cost Control Focus: New management is prioritizing cost reductions, overhead cuts, business simplification, and tighter capital expenditure.

Debt Reduction: Proceeds from the School Bus sale are being used to deleverage, aiming for a year-end covenant gearing of 2.5x.

Strategic Changes: U.K. Coach will join ALSA to create a pan-European coach business, targeting efficiency and synergy.

Problem Contracts: Ongoing operational and financial issues in WeDriveU (Washington contract) and German Rail are being actively addressed.

Key Financials
Revenue
GBP 1.3 billion
Adjusted Operating Profit
GBP 59.9 million
Full Year Profit Guidance
GBP 180–195 million
Free Cash Flow
GBP 57.8 million
Return on Capital Employed
11.6%
Adjusted Net Debt
GBP 1.3 billion
ALSA Revenue Growth
over 13%
ALSA Underlying Profit Growth
around 10%
ALSA Adjusted Operating Profit
GBP 82 million
WeDriveU Revenue Growth
over 13%
WeDriveU Operating Profit
$3.4 million
German Rail Turnover
EUR 143 million
German Rail Operating Profit
EUR 0.6 million
Covenant Gearing
3x at June 30th (would have been 2.7x with School Bus proceeds)
Funding from TfWM (U.K. Bus)
GBP 26.2 million
U.K. Bus Operating Loss
GBP 0.5 million (negative)
Growth Capital Expenditure
GBP 61.5 million
Earnings Call Recording

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