National Express to change name to Mobico

National Express is to change its name to Mobico as the UK transport group synonymous with long-distance coach journeys seeks to project a global image.

Chief executive Ignacio Garat said in a statement that he wanted Mobico to become “the world’s premier shared mobility operator”. “Whilst National Express is a highly valued consumer brand, Mobico better represents our multi-modal operations, global reach and future ambitions,” he added.

The group, which floated as National Express in 1992, operates public transport businesses in Europe, North America and Africa. The name has been used on UK long-distance coaches since 1974 and will continue to be used as a customer-facing brand. It will retain other brands including Alsa, WeDriveU, Peterman and Durham School Services.

The corporate name change will take place next month, when the stock market ticker will change from NEX to MCG.

Although the company has its roots in the UK, its revenues over the years have shifted overseas. The UK represents a fifth of revenue, while North America accounts for the lion’s share at 37 per cent and Alsa represents 34 per cent.

National Express said the move would “not involve any operational or structural changes to the group or any of its subsidiaries and will be implemented in a cost-effective way”. 

A source close to National Express said the group remains committed to the UK but noted that the name change is more reflective of the company’s global composition and other strong local brands, such as Alsa in Spain and Morocco.

Shares in National Express have halved over the past year to 119p. The company was hit by its US school bus operation in particular, owing to cost pressures and a dearth of drivers — issues which analysts say are now easing.

Analysts said the renaming could help the group win transport contracts from international companies. Alex Paterson, analyst at Peel Hunt, said: “The National Express brand is associated with coach services in the UK, but it’s not really reflective of what the group offers. It may be beneficial if it widens perception of it being an international operator.”

John Moore, investment manager at RBC Brewin Dolphin said: “National Express has a lot of things to sort, most notably the level of debt in the business which is uncomfortably high, and operational issues such as a lack of drivers in the US school bus sector.

“Whilst many investors might lament the time, money and effort invested in a change of name, this will quickly pass if operational and financial targets are met.”

However, some corporate rebrands over the years have been poorly-received and have even prompted businesses to revert to the original name.

Royal Mail came under the spotlight when it changed its name in 2001 to Consignia, which was ditched just 16 months later. Last year, the UK postal service said it was rebranding its holding company to International Distributions Services.

Fund group Abrdn renamed its business in 2021 but drew a mixed response over its decision to remove the vowels and drop the Standard Life Aberdeen brand following its merger in 2017.

Other rebrands have taken time to embed. Some Aviva shareholders criticised its name change in 2009 when the insurer ditched the Norwich Union brand, which had more than 200 years of history.