By Daily,Editor

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Shares in National Express’ owner tumbled to a record low after a drop in half-year earnings.

Coach and bus giant Mobico reported a worse-than-expected 12.7 per cent fall in underlying operating profits to £59.9million for the six months to June 30 – down 4.8 per cent on a constant currency basis.

It also stayed in the red with pre-tax losses of £7.1million, although this was narrowed from £29.3million a year earlier.

Shares fell by more than 20 per cent to a record low, finally closing 14.7 per cent down at 27.6p.

The company flagged increasing competition in the UK coach sector, while it also put the earnings drop down to issues with two contracts at WeDriveU, its North America transit and shuttle services business, which have been hit by temporary operational troubles.

In a statement, Mobico said: “The competitive landscape in the UK coach sector has undergone significant change, marked by increasing competitive intensity.

“Additionally, modal competition is increasing from other sectors including rail as it recovers from industrial action and staff shortage issues.”

The group will merge the UK coach operations within its better performing Spanish Alsa business from January next year, with aims to drive cost savings and share best practice.

Despite the half-year knock to earnings, the group said it remained on track for full-year guidance.