1208 GMT - FirstGroup shrugged off the loss of the TransPennine Express franchise and the continuing effect of industrial action as it benefits from strong travel demand stemming from the U.K.'s government scheme to cap bus fares, AJ Bell analyst Russ Mould writes. Still, the transport operator needs to focus on improving performance and reliability if it isn't to face further government sanctions and see passenger numbers drop as people are turned off by delays and cancellations, Mould says. "The company's strong balance sheet is testament to careful husbandry of its finances through the pandemic and gives the company scope to reward shareholders with buybacks and to look at acquisitions, perhaps even a bid for rival U.K. bus operator Arriva," he says. Shares are up 15% at 136.90 pence. (anthony.orunagoriainoff@dowjones.com)

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Pets at Home's Discipline Improves Food Pricing Ahead of Competitors

1135 GMT - Pets at Home's food pricing position in April and May suggests a clear positive change that reflects the group's strong cost discipline despite the inflationary backdrop, Jefferies analysts Andrew Wade and Grace Gilberg say in a note. Jefferies's pet food pricing tracker highlights that the U.K. pet-care company pricing position moved to within 1% of zooplus from the previous range of 3% to 5%, and to around 10% cheaper than Amazon from 3% to 5% recorded last autumn, they say. While the comparisons focus on large-scale competitors, the company has a substantial advantage versus smaller operators, where the average pricing is 30% more expensive on like-for-like products, they add. (michael.susin@wsj.com)


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(END) Dow Jones Newswires

06-08-23 1206ET