high passenger growth has seen profits soar at Stagecoach's UK bus business, according to full year financial results published by the group last week.

Revenue from the Perth-based group's UK bus operations increased by 7.7% to £743.9m in the year to April 30, 2008. The operating profit leapt by 30.1% to reach £109.9m, an increase of £25.4m on the previous year. As a result the operating margin was 14.8% compared to 12.2% in 2007.

UK bus passenger volumes in the 12 months were 3.6% higher than the equivalent prior year period. Stagecoach estimates that underlying full fare passenger volume growth was around 2.9%, with the remaining growth coming from concessionary travel schemes.

"Stagecoach is continuing to lead the transport sector in attracting more passengers to bus travel," commented chief executive Brian Souter. "We have delivered further revenue and organic passenger growth at our UK Bus division in both metropolitan areas and shire counties."

Last month Souter told a meeting of young bus managers that the bus industry could be about to enter a new era of high growth (Transit June 20).