Stagecoach has reported a "challenging economic environment supporting a modal shift away from car to bus", as it recruited and trained more than 2,300 new bus drivers during the half-year.
The Perth-headquartered transport group's interim results for the six months ended 29 October 2022 showed growth in adjusted profit, reflecting recovery in passenger volumes and payments from national governments to protect public transport services.
Revenue rose to £669.6m in the last six months, from £579.4m in the same period last year. Adjusted pre-tax profit rose to £36.4m from £18.4m, in line with expectations.
There was further underlying cash generation and reduction in net debt, notwithstanding additions to net debt resulting from two acquisitions of businesses in the half-year.
Stagecoach also noted a substantial strengthening of its pensions position, with net pre-deferred tax pensions assets of £167.4m at the end of October, a £197.2m improvement in the half-year, and proactive de-risking of pension schemes.
There was growth in passenger demand in UK regional bus, with recent passenger journeys at around 80% of equivalent 2019 levels.
The free bus travel scheme for under-22s is supporting strong growth in bus travel by young people in Scotland, while proactive management of labour shortages and re-shaping of local bus networks has been taken to reflect new travel patterns.
The group, which employs around 23,000 people, earlier this year accepted a takeover offer from German asset manager DWS Infrastructure.
Group chief executive Martin Griffiths said: “We are pleased to report a positive set of results for the half-year ended 29 October, as we move forward under new ownership - delivering increased revenue and profit, reflecting growth in our business and investment by the UK, Scottish and Welsh governments in bus networks.
“We have made further progress as we rebuild from the pandemic, manage the immediate-term macro-economic headwinds, and position our business to maximise the opportunities for growth as we transition to a net zero future.
“At the same time, the current economic environment is helping to demonstrate the good value of our public transport services and encourage modal shift away from the car.”
“We remain positive on the long-term outlook for the group, while mindful of the macro-economic challenges facing businesses across the country.”
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