GERT ZONNEVELD PANMURE GORDON
Following the preliminary results, we have downgraded our earnings forecasts. The reduction is driven by cuts to our North American forecasts, mainly in student transportation where margin progression has been a little slower than expected.
JOHN LAWSON INVESTEC
There were no major surprises in the trading divisions since the last IMS, although compared to our estimates, the Greyhound figure was a touch lighter than we forecast. The latest news should clear the air and reduce the group’s debt once and for all, so should help the stock in the longer-term.
GERALD KHOO ESPIRITO SANTO
In our view, this ought to remove all material concerns about the group’s balance sheet. In particular, it should reduce the adverse implications of potential rail franchise losses to just the lost earnings and cash alone, with no onward consequences for the balance sheet.