The 10.8% increase in turnover for the UK bus division is backed-up by a 21% increase in London operations and 7.1% outside the capital. Despite significant increases in fuel and other costs over the year Stagecoach managed to keep their margin at 11.5%.

Commenting on the results, Chief Executive, Brian Souter said, "We have achieved strong organic growth in our bus and rail operations in the UK and overseas, delivering on our strategic objectives for the Group. This excellent performance has been driven by increased investment, innovation, targeted marketing and a clear focus on first-class service delivery.

These strong results have been achieved despite significant cost pressures in the transport sector, particularly on fuel prices. We are well placed to benefit from new rail franchising opportunities in the UK and I am confident our cash-generative portfolio will produce further significant growth."

Stagecoach also announced today the appointment of Ian Dobbs as Chief Executive of the Group’s Rail Division.