Bus and train group Arriva has reported a strong start to the year and said it wants to buy more companies in Europe.

The company is one of the UK's largest bus operators, running over 20% of London's services, and also owns the Arriva Trains Merseyside and Arriva Trains Northern rail franchises.

Despite a series of disputes over pay in the past six months, Arriva met financial forecasts and said on Thursday that cash flow was strong.

It has already made a number of acquisitions in Europe this year and said it was looking out for further opportunities to expand overseas.

In July, Arriva bought Italy's largest private bus operator, Autoservizi. This followed its purchase of a 51% stake in the Portuguese bus group Transportes Sul De Tejo in June.

However, the company has been involved in one of the longest running rail disputes in UK history with conductors of its Arriva Trains Northern network over pay.

In July, Arriva won a bid to run 15% of the Danish rail network although this has proved unpopular with Danish employees.

A public employees union has been granted a hearing in front of a Danish High Court judge in September in an attempt to get the contract overturned.