New trains have helped to boost profits

Stagecoach, which announced plans for the shareholder windfall in April, said investors would get the equivalent of 18 pence per share.

The news came as it unveiled a better-than-expected 6% rise in pre-tax profit before exceptional items to �120m.

Stagecoach said the performance of its UK rail business, which includes South West Trains, improved "significantly".

Chief executive Brian Souter said the 15% rise in operating profits at its UK train business was thanks to tough cost control, improved operational performance and new trains.

He added that the company had made a "promising start" to the new financial year, with trading in line with expectations.

Stagecoach has been refocusing its business on its core UK bus and rail operations, and has sold off some of its loss-making North American businesses.

The Perth-based company said it had managed to cut its net debt by �492m, or 88%, to �68m.