Stagecoach, the bus and rail company, on Thursday reported better than expected profit growth since its year end, mainly due to higher revenue growth in its bus division as commuters increasingly opt for public transport.

In its interim management statement for period since 1 May, Stagecoach said that like-for-like revenue growth in its UK bus business had increased 9.3 per cent, with strong trading, despite cost pressures from increased fuel costs and higher UK inflation.