First Group operates three rail franchises

Bus and train operator First Group has seen business lifted by strong growth in its North American operations and from more buses being introduced in London.

The growth helped underlying profits for the year to 31 March to climb 2% to �159.8m ($257m)

First Group is the largest bus operator in the UK.

It is also one of the biggest providers of school buses in the US and Canada and operates three UK rail franchises.

Bid blocked

The firm said it was "extremely disappointed" at missing out on the short-list for the new Greater Anglia franchise, but said it was upbeat about future prospects.

First Group operates the First Great Western, First Great Eastern and First North Western rail franchises in the UK.

Chief executive Moir Lockhead said it was working with the Strategic Rail Authority "to understand how they reached the decision" to leave if off the Greater Anglia shortlist.

First Group said turnover across all its businesses grew by 6% over the year to �2.29bn.

The biggest rise came from its school bus operations in North America, where turnover climbed 16% to �582.4m on a constant exchange rate basis.

On the buses

First Group also benefited in London from the transport policies being implemented by Mayor Ken Livingstone.

The introduction of the traffic congestion charge had cut car volumes by about 15%, the company said, leading to improved journey times for buses.

First Group has added 130 buses as part of Transport for London's policies and the company said in all the changes had added about �25m of extra turnover.