Bus and rail group Stagecoach today reported a rise in profits and revenues as the higher cost of petrol saw more people ditch their cars and take public transport.

The Perth-based transport firm said operating profits grew 25% to £240.2 million in the year to April 30, as revenues increased in all of its divisions.

Its UK rail arm, which runs the South West Trains commuter franchise and East Midlands Trains, saw revenues growth of 4.2% to £1 billion, while operating profits increased by 16% to £48.4 million.

Virgin Rail, in which it owns a 49% stake, notched up sales growth of 10.5%, while its share of operating profits increased 55% to £39.5 million.

The company’s regional UK bus division - which operates in cities including Liverpool, Newcastle, Hull and Manchester - saw sales growth of 2.1% to £893.6 million. Operating profits rose 21% to £153.1 million.

Chief executive Sir Brian Souter said the company had seen further evidence of modal shift as consumers look for alternatives to the rising cost of motoring and increasing road congestion.