MERSEYSIDE’S second biggest bus operator raised its earnings forecast for the year after reporting revenue growth across its UK services.

In a trading update, Stagecoach said like-for-like revenues for the financial year to date are 2.9% ahead in its bus division; 4% better in its rail operations; and almost 10% ahead at Virgin Rail Group, which includes the Liverpool-to-London mainline route and in which Stagecoach has a 49% stake.

Its North American arm suffered a 4% decline in revenues, but the group said it still expects full-year results to be better than previous predictions as the economic recovery starts to take hold on both sides of the Atlantic.

The update said: “The overall profitability of the group has continued to be strong, with improved revenue trends in recent months and ongoing cost control.

“Whilst the sustainability and pace of economic recovery remains uncertain, the outlook for the group is positive.”

The company and its peers were hit as rail passenger numbers fell due to rising unemployment during the economic downturn.

However, it now expects earnings per share in the year to end-April to be at least 17.5p – better than market expectations – due to a strong performance at its UK rail division and lower expected fuel costs for its bus operations.

Stagecoach operates a 200-strong fleet of buses on its Merseyside routes, making it the second biggest player behind Arriva, which accounts for a 60% market share.