STAGECOACH is set to rejoin the prestigious FTSE-100 group of companies later this month, as its fortunes are boosted by a tidal shift towards public transport.
The quarterly reshuffle of the FTSE indexes takes place on Wednesday, and barring a sudden reversal in fortunes, Stagecoach will become part of the exclusive club of the largest 100 companies listed on the London Stock Exchange. Perth-based Stageco
ach, which runs everything from buses to ferries, has been boosted in recent months by a major growth in the use of public transport, as thousands make the switch.
Its fortunes have also improved by consistent out performance of market expectations.
Last month Stagecoach told the City that profits had grown faster than it expected in the first few months of the year, sending shares to record levels above 300p. They peaked at 327.5p on Monday and closed last night at 310.75p, a market capitalisation of £2.23 billion.
At that level, the company is worth more than a handful of current FTSE-100 members, including retailer Carphone Warehouse, broadcaster ITV and pubs group Enterprise Inns, all likely to be thrown out of the index.
Formed by brother and sister Brian Souter and Ann Gloag in 1980, Stagecoach grew to become the largest bus company in the world, joining the FTSE-100 in 1998.
But a string of profit warnings, largely prompted by the company's troubled US business, saw it demoted just 15 months later.
The period since has seen the company return to its roots, selling most of its business in the US and focusing on bus business and rail franchises in the UK.
Stagecoach would be the second Perth-based company in the prestigious index, along with Scottish & Southern Energy.
The full article contains 301 words and appears in The Scotsman newspaper.
