Market watch: Olympics boost for EasyJet

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EASYJET is expected to reveal this week that profits took off thanks to a last-minute rush for holidays following the Olympic Games.

The carrier upped its profit guidance in October as London 2012 proved to be far better than feared for the sector. Luton-based EasyJet said Britons delayed their travel plans until after the Olympic Games, while disruption at airports during the event itself was kept to a minimum. The group told investors that profits were likely to be between £310 million and £320m in the year to 30 September, up from £248m the previous year.

Struggling retailer Mothercare should also be better off this year after cost-cutting measures from new boss Simon Calver. Analysts believe it will report reduced losses of £3m on Thursday after its Jools Oliver and value ranges helped it return to sales growth. Calver joined Mothercare in April amid a dismal £103m loss pledging to be ruthless. The City will hear how plans to cut store numbers from 311 to 200 by 2015 are going.

Homeserve will be hoping to put a difficult period behind it on Tuesday, with half-year profits forecast to be flat at around £25.8m because of the costs of a mis-selling probe. The firm suspended call centre operations last October and has admitted that the costs of improved governance and controls will weigh on its bottom line.

Week ahead:

Tomorrow: Majestic Wine, Mitie Tuesday: EasyJet, Enterprise Inns, Homeserve
Wednesday: Halfords, Optos, Omega Diagnostics

Thursday: SABMiller