By Richard Burdge

PERTH-BASED transport group Stagecoach yesterday announced a £250 million windfall for their shareholders and a 6.2% rise in annual profits.

Falling debts and the disposal of much of the group’s North American coach business is behind the return of capital, equivalent to 18p a share.

The bus and rail group reported pre-tax profits of £120 million due to a strong year of growth.

The UK rail sector of the company, which includes South West Trains and a 49% share in Virgin Rail, saw operating profits increase by 15.4%.

“We have had a very successful year, delivering on our key strategic priorities,” said chief executive Brian Souter yesterday.

“Our focus on new business development, innovation and targeted investment is driving growth, particularly in our UK bus operations.

“In rail, we have significantly out-performed last year by controlling costs, improving operational performance and investing in new trains.

“Our restructuring in North America has resulted in a core business with significant potential for future growth.

“We are pleased that our forward-looking ideas to improve the bus and rail industries have been positively received.

“Stagecoach is at the leading edge of public transport provision and our shareholders can share our confidence in the future prospects of our business.

“While still early in the new financial year we have made a promising start and trading is in line with our expectations.”

Stagecoach has been dis-posing of parts of its overseas interests to concentrate on its core UK bus and rail businesses. The move has significantly reduced debts and leaves the company with its UK bus and rail operations, a smaller US bus business and bus operations in New Zealand.

The company said it is now focused on growing revenues and profits from its existing businesses.

The group’s bus division, which operates across the country, saw turnover increase by 8.7% to £650 million, assisted by a 19.1% rise in turnover from its London bus business.

The division’s operating profits were up 11.6% to £74.8 million.

Operating profits in the US rose to £14.9 million, though the New Zealand business reported a 15.2% fall in operating profits to £10.7 million.

Stagecoach shares closed 0.25p ahead yesterday at 87.25p.