Stagecoach stock plummets after earnings forecast cut

UK bus and rail group move comes as Paris attacks curb demand on international routes

Stagecoach chief executive Martin Griffiths: “We’ve seen a slowdown in some of our inter-city rail and coach revenues. We think some of that will be related to the terrible incidents in Paris.”Photograph: Fraser Band/Stagecoach/PA Wire
Stagecoach chief executive Martin Griffiths: “We’ve seen a slowdown in some of our inter-city rail and coach revenues. We think some of that will be related to the terrible incidents in Paris.”Photograph: Fraser Band/Stagecoach/PA Wire

British Bus and rail group Stagecoach fell the most in four years after cutting its earnings forecast as floods in northern Britain disrupt travel and the Paris terror attacks curb demand on international routes.

The company also failed in a bid to run the TransPennine Express rail franchise, which remains with FirstGroup, while the Northern network was awarded to a unit of Germany’s Deutsche Bahn.

Stagecoach stock dropped 17 per cent, the steepest intraday decline since October 2011 before trading 14 per cent lower to 304.7 pence, valuing the company at £1.76 billion.

"We've seen a slowdown in some of our inter-city rail and coach revenues," chief executive Martin Griffiths said.

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“We think some of that will be related to the terrible incidents in Paris, also just a general slowing of growth in our UK bus division.”