Market watch: Stagecoach shrugs off rail row

By PETER RANSCOMBE
Published on 02/12/2012 00:00

TRANSPORT firm Stagecoach is expected to shrug off the row over the West Coast rail franchise when it posts its interim results on Wednesday.

Analysts believe the uncertainty caused by the UK Government’s review of the franchise fiasco – which initially saw the West Coast line taken away from Stagecoach and Sir Richard Branson’s Virgin Rail joint venture and handed to FirstGroup, before the whole process was put on hold – will not have a “material impact” on the Perth-based firm.

Deutsche Bank analyst Anand Date said Stagecoach made 70 per cent of its profits from its regional bus business. He added: “Relative to its peer group, this would reinforce Stagecoach as the quality name in the sector.”

His comments followed positive broker notes last week from Nomura, Oriel and Panmure Gordon.

Suffolk-based brewer Greene King will toast rising sales on Tuesday after enjoying an Olympic boost. Food sales at the group, which owns the Belhaven brewery in Dunbar, are expected to have been boosted by allowing customers at its Loch Fyne restaurant chain to pick how they want their fish cooked.

Supermarket chain Tesco will deliver a trading update on Wednesday, with analysts pencilling in a dip in third-quarter sales. Sales had ticked up in the second quarter, ending six quarters of decline.

Tomorrow: Bank of England Funding for Lending figures

Tuesday: TUI Travel, Wolseley

Wednesday: Sage

Thursday: Mulberry, PZ Cussons

Friday: Berkeley