The chief executive of National Express said the company was in constructive talks with the government over the future of its train franchises, although the rail minister had previously insisted there was no room for discussion.

Richard Bowker was speaking ahead of the bus and rail operator’s annual meeting on Wednesday. Press reports have suggested that the company will take advantage of the meeting to launch a rights issue and announce the effective scrapping of its most onerous rail contract, its franchise to run long-distance passenger trains on the London-Edinburgh East Coast main line.