Stagecoach is one of the UK's largest transport groups

The firm said like-for-like UK rail revenues - which pull out the impact of new services - rose 14% in the four months from 31 October.

Its like-for-like UK bus revenues added 7.4%, again compared to the same period a year earlier.

Stagecoach said the trading update was "encouraging". It covers the first four months of its second half-year.

'Positive outlook'

"Whilst we are mindful of macroeconomic developments, and of continuing cost pressures, such as increased fuel prices, the outlook remains positive," it said.

Its trading update was at the top end of market expectations.

Stagecoach operates bus services across the UK, holding a 16% market share.

It controls 25% of the rail market, including South West Trains, East Midlands Trains, and a 49% stake in Virgin Trains, the operator of the West Coast Main Line.