TRANSPORT group Stagecoach said environmental fears and higher fuel costs were sparking a "fundamental shift" towards public transport as it unveiled big revenue rises for bus operations.
The Perth in Scotland-based firm said like-for-like revenues rose 7.5% at its UK bus division.
Combined with even greater results from its trains division, they helped the group post underlying pre-tax profits of £174.4 million for the year to April 30, marginally ahead of market expectations.
Chief executive Brian Souter said: "We believe there are growing signs of a fundamental positive shift in customer attitudes towards public transport, driven by increasing road congestion, rising fuel costs and concern about climate change."
He said the current financial year had started well, and was encouraged by the "significant potential for further modal shift from the car to bus and train travel".
Overall like-for-like passenger volumes at the UK bus arm, which contributes just over 40% of group revenue, were up around 3.6%.
The division saw operating margin rise to 14.8% from 12.2% in 2007, representing revenue growth, relatively stable year-on-year fuel costs and a continued focus on cost control.
Around two million UK passengers travel on Stagecoach buses every day in around 100 towns and cities in the UK. The firm has a fleet of around 7,000 buses.
Stagecoach said it was "mindful" of the cost impact of rising fuel costs. The group gets through 328 million litres of diesel per year.
